New Liberal Party money brawl as president Michael Kroger and Greg Hannan battle over sale of Exhibition Street ‘home’

THE future of the Liberals’ CBD headquarters in the Melbourne CBD is shaping as a major issue in the battle for the party’s state presidency.

THE future of the Liberals’ headquarters in the Melbourne CBD is shaping as a major issue in the battle for the party’s state presidency.

Incumbent Michael Kroger is being challenged by low profile vice-president Greg Hannan, in a contest observers say is closer than the cakewalk initially expected.

Several senior Liberals have told the Herald Sun they believe Mr Kroger wants to sell the Exhibition St building.

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The issue has been seized upon by Mr Hannan to gain support from members who oppose “selling the silverware”.

104 Exhibition St, Melbourne, headquarters of the Liberal Party.

Talk of the sale comes amid fears the party could lose its court case against Liberal benefactor the Cormack Foundation and face substantial cost orders.

Speculation about an imminent sale has increased in recent days as word has spread that the party is on the verge of signing a lease on new office space in the CBD to run the November state election campaign, because it has let most of the space in its own building.

104 Exhibition St, Melbourne, headquarters of the Liberal Party.

When that is signed, some Liberals believe the party will vacate Exhibition St entirely, while Mr Kroger has told a number of party members he has received unsolicited offers for the building worth up to $30 million.

Opposition Leader Matthew Guy is understood to support the sale, but one federal MP said there would be great resistance from some ­members.

“If he (Mr Kroger) loses Cormack, people will think he’s selling it for the wrong reasons,” one federal MP said.

Victorian Opposition Leader Matthew Guy.

The MP said it was becoming known that Mr Guy backed the sale, but people would be suspicious that his principle concern was funding the election.

“Nothing against him, he’s an Opposition Leader in an election year,” the MP said.

Another source said that the building was not for sale but the “right offer” might change minds.