The Conservative Party is set to clear its debts after selling its former headquarters at 32 Smith Square for £30.5 million. The deal places the Tories in their strongest financial position in years, with the party's debts estimated between £14 million and £20 million.
The sale includes a clause that could yield further profits, with future gains split 50-50 after the first £1 million. If the building is resold for £40 million, the party's profit after expenses could reach around £20 million. The buyer is believed to be Harcourt Developments, a Dublin-based firm founded by Mike Murphy and Andrew Parker Bowles.
The building, from which Margaret Thatcher ran her 1979 election campaign, is likely to be converted into luxury flats. The deal was orchestrated by businessman Christopher Moran, who spent two years negotiating the purchase of the freehold, costing £15.65 million, to unlock the site's redevelopment potential.
A senior Conservative insider said: 'The Tory Party is now totally solvent just from one deal. It is in the best financial position for years and years.' However, the transaction has sparked controversy over claims it avoided £625,000 in stamp duty by buying a holding company, and suggestions of a hidden foreign donation, which the party denies.
