I just wanted to post a followup on this.

We ran three test to the backup

1. Restored to a Physical Server

2. Restored to a another virtual server using nas instead of San

3. Restored to the same virtual server after creating a new lun, datastore and virtual disk.

The compress backup we were restoring was 33 Gb to expand to a 140 gb mdf and 17 gb ldf

1. Took about 40 minutes to complete without any timeout messages

2. Took 4 Hours 30 minutes without any timeout messages

3. Took about 55 minutes with the same timeout message at about 40% complete

So with this I think it was safe to confirm that the issue was related to the drive I was restoring to and not the backup.

Again, Steve thanks for confirming where to focus the efforts.