Businessman and race pundit Sanders Frith-Brown has splashed out more than $2 million on a wool farm in Tasmania which is one and a half times the size of Bermuda.

And he plans to settle on the Australian island in five years time with his Tasmanian-born wife Valerie James.

He bought the 7,465 hectare superfine wool grazing property Mount Morriston in Ross for 4.1 million Australian dollars in an auction on Wednesday.

Mr. Frith-Brown also paid more than one million Australian dollars for a flock of 16,000 sheep.

He said: "The wool is almost as fine as cashmere."

The couple have pledged to maintain the beef and wool property, which has set nine world record wool prices and to retain Mt Morriston's two full-time employees.

Mr. Frith-Brown already owns historic properties and farms in Tasmania, according to the Tasmanian online newspaper The Examiner, after going there in the 1970s to study medicine.

Mr. Frith-Brown has not yet visited Mt Morriston but plans to go in February.

He said: "The Australian dollar looks so attractive at 55 US cents. I don't know why it is so weak. It doesn't make sense.

"You can get a house there for a tenth of the price you would pay here. It's absolutely amazing."

Mr. Frith-Brown intends to develop the property as a tourist attraction for overseas visitors. Plans include a bed-and-breakfast and historic tractor museum.

However Mr. Frith-Brown said he was planning to cut down a little bit on property investments in Bermuda.