Govt sells 'West Block' for $6.25m

The federal government is selling one of its properties for $6.25 million in the shadows on Parliament House, with its new owners planning to transform it into a boutique hotel.

The heritage-protected "West Block" building, which has previously housed the likes of National Library and the Australian Electoral Commission, is being sold to a subsidiary of the Geocon Land Holding group, a Canberra-based developer.

"The successful sale of the West Block building is part of the government's ongoing efforts to ensure the Commonwealth's property portfolio is appropriate for expected future needs and maximises value for taxpayers," Finance Minister Mathias Cormann said in a statement on Thursday.