Under national security regulations during world War II, the building was requisitioned for use as headquarters for General Macarthur's pacific operations. Following the war, the building was compulsorily acquistioned by the Commonwealth of Australia. It housed several government departments including the Postmaster General's Department and the War Services Homes Commission. Grace Bros eventually received a financial settlement in 1953 after issuing a writ in the High Court declaring the acquisition invalid.
The Low Yat Group bought the building in 1995 and restored its Art Deco features - the grand corner tower, fan-vaulted ceilings, decorative ironwork balustratdes and stonework, polished veined marble and majestically lit atrium - and other original features such as the mosaic tiling and the six brass and wood panelled lifts.