A TOOWOOMBA developer has launched an ambitious plan to turn the former site of Allied Mills into high-end boutique apartments, restaurants and retail outlets.

Colliers International yesterday sold the property at 275 Ruthven St for a record $2.8 million.

Allied Mills put the property on the market after the factory and surrounding facilities were inundated during the 2011 floods.

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While not confirmed, Richard Adams Homes is understood to be the purchaser of the site and its potential developer.

That company wants to convert the former mill silos into towering apartment blocks to be located above office suites, cafes, restaurants and retail outlets.

It will be located next to a recently approved Bunnings Warehouse and Toowoomba Regional Council's new circulating ring road.

Colliers International commercial director Markus Eames said the sale was "an unreal result for all parties".

"The property was one of the largest parcels of land in the CBD fringe available for redevelopment, more specifically with the availability for a mixed-use outcome," Mr Eames said.

"The successful purchaser is a local party with an avid interest in commercial interests."

Mr Eames said the proposed development would benefit from Toowoomba Regional Council's railway precinct redevelopment.

The development of the property, which incorporates a total of 8577sq m, will occur over a number of stages.

Colliers International sales agent Drew Camm welcomed the innovative plans for the site.

"The outlook will be to incorporate a number of uses under the site's current zoning, including office suites, retail outlets, warehousing, and higher density residential," he said.

Several potential tenants have started talks to lease properties once the redevelopment has been completed.

They include furniture, electrical and homeware retailers, medical professionals, food retailers, restaurants, legal professionals, engineers, florists and speciality retailers.

Leasing inquiries can be made to Drew Camm at Colliers International Toowoomba on 0432 055 250.