But it will not become part of the popular late-night Mooseheads venue, which is next door, despite the owners' involvement in the sale.

CBRE Canberra sales agent Mark Nicholls confirmed the site, at 91-99 London Circuit, had been sold but could not disclose the price until settlement.

The site passed in with no buyer bids at an auction in late May.

Mr Nicholls said it had been purchased by local investors but would not confirm any more details about the sale.

''It's basically been sold to an investor … looking to lease it to a fast-food operator, or a restaurant, or a nightclub,'' he said.

The Canberra Times understands the sale was made to a group, including the owners of Mooseheads Pub and Nightclub.

A spokesperson for the group confirmed the shopfront would be leased and the nightclub would not be extended.

The site, which features the retail shop area and associated office space upstairs, was passed in at auction in May with a vendor's bid of $1.8 million.

The Sydney Building corner property housed Fletcher Jones for 50 years before the retail company went into administration in 2011. It has been vacant for about a year, apart from providing performance space during the You Are Here Festival.