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Tories sell old HQ in £30m deal | Tories sell old HQ in £30m deal |
(about 1 hour later) | |
The Conservatives have sold their old headquarters in Smith Square, Westminster, in a £30.5m deal. | |
The sale is reported to have made the party a profit of about £15m which it will use to pay off most of its debts. | |
Labour, by contrast, owes about £23m with lenders demanding repayment. | |
The Tories said 32 Smith Square, and neighbouring flats in Tufton Street, had been sold to an undisclosed European company. | |
A Tory spokesman said the party had signed a confidentiality agreement with the new owner at their request, but he said they were not party donors. | |
"There is nothing suspicious about it," he told the BBC News Website. | |
"It is just they have asked for their name not to be disclosed." | |
Millbank | |
The Conservatives have been trying to sell their old head office since July 2004 when they moved to more modern premises in nearby Victoria Street. | |
The Smith Square building was the scene of many iconic moments in the party's history but its "rabbit warren" interior was also reputed to have been a breeding ground for plots and intrigue. | |
The party is due to move into new offices at 30 Millbank, on the banks of the Thames, when the Victoria Street lease runs out next month. | |
Labour occupied floors in the separate building of Millbank Tower from 1995 to 2002. | |
Contracts were exchanged with the new owner of 32 Smith Square on Wednesday and completion will take place next month. | |
Labour debts | |
In a statement, the party said the new owner was "a European company with wide experience in property investment and development". | |
"The company has other significant operations and assets in London, including high quality refurbishment projects," it added. | |
Cash is reported to have been flowing into Tory coffers since the election of David Cameron as leader. | |
The Spectator magazine claimed £21m had been raised during the last year, compared with £15m in a normal non-election financial year. | |
However, some of its biggest donors, including spread betting magnate Stuart Wheeler and retail tycoon Lord Kalms, have expressed disquiet at the direction in which Mr Cameron is taking the party. | |
Labour, meanwhile, still faces a £23 million-plus debt despite a £2m donation from Indian steel tycoon Lakshmi Mittal last month. | |
The party sold its old head office in Old Queen Street for £6.5m but that was spent on repaying loans to the Co-operative bank. | |
It is relying on financial support from trade unions and bank loans as it attempts to pay off debts to wealthy backers who bankrolled its general election campaign. |