Owner David Winters said work had begun on the five-acre site and he hoped it would be operating by mid-next year.

He said the nursery, called South West Advanced Trees, would stock established native and ornamental trees.

The wholesale tree nursery will operate in addition to the nursery's Lava Street site in Warrnambool.

Mr Winters said he and partner Joanna Williams had made the tough decision to sell the business' original Haddon site, to concentrate on its Warrnambool operations, which opened in May 2020.

He said they were putting the Haddon site, which is west of Ballarat, on the market for health reasons and in a bid to decrease their workload.

Mr Winters said he was emotional when he announced this week they were selling the five-acre site, which includes a cafe, after five-and-a-half years in business.

It will be for sale via expressions of interest and he said it could take time to find the right people to take over their "much-loved Haddon location so it keeps on growing from strength to strength".

"Haddon is a very big, profitable business but at the end of the day you're no good if you haven't got your health," Mr Winters said.

"When we bought it, the (old owners) were at the point of closing it down and we bought it and built it up from there. If someone takes it on, it's all there. The infrastructure, the whole lot's built, it just needs someone to keep it going.

"We've had a couple of interested people who are wanting to have a look at it."

He said moving to Warrnambool was an easy decision for the pair.

"The reality is we cannot maintain our current pace," Mr Winters said.

"Both Jo and I are working 12-hours-a-day, seven-days-a-week, if not more across both locations.

"With my ongoing health issues, things in reality need to change. Our future is Warrnambool. It's been a good success and that's why we thought it was a good-sized venue to manage and take a step back."

He said the couple would "continue to build a very successful Warrnambool nursery".

"Everyone's been very welcoming for the last 18 months we've been here," he said.

"It was a pretty easy decision to make because it's gone very well down here and everyone's been supportive."

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