Colonial Mutual building in Canberra's city bought by Bulum Group

The 859 square metre block, located on 17-21 University Ave, City sold for $10 million from an off-market sale.

The 1968 building and its distinctive architectural feature windows has 3998-square-metres of floor space across seven levels.

LJ Hooker Commercial Canberra's Mark Thompson said existing tenants would remain and vacant space would be advertised to attract new occupants.

Its current tenants include the Fair Work Commission and Aboriginal Legal Service.

"I think probably and ultimately the site will get re-developed but our clients intention is to hold the building as an investment for the time being and then just look at redevelopment opportunities further down the track when the time is appropriate," Mr Thompson said.

The site, listed as commercial land, is within the city west precinct and near the Law Courts, Australian National University, CBD retail facilities and the parliamentary triangle.

Developer Nik Bulum said there were no definite plans for the site but that he wanted to make use of the "beautiful views".

"I'd love to do something with all of that, but there are so many apartments in Canberra so we're trying to think of some different things to do there," Mr Bulum said.

He said a development application would be lodged to the planning authority and he would have information on more concrete plans for the site in the next few months.