Indian tycoon swoops to save McCabe with £300m

Irish contractor McCabe, which is building a £110m tower in east London, has been bailed out by an Indian entrepreneur.

The Dublin-based firm, which has an office in London, ran out of credit with its troubled bank, Anglo Irish.

But Western Gulf Advisory (WGA), a Bahrain-based investment company owned by Ahsan Ali, stepped in with £200m to pay off the firm’s debts and £100m for liquidity.

The £200m is a loan that will be repaid at a rate of 2.7%, while the £100m is in exchange for a 50% stake in McCabe, although Ali will be a hands-off owner.

He said: “John McCabe [McCabe’s founder and managing director] has very nice experience in construction and development. I don’t know anything about construction, so I will allow him to cook his own dish and I will provide the ingredients.

“I am looking at other construction firms in the UK, but it’s premature to name them.”

McCabe, a £100m-turnover contractor with 200 employees, will use the cash to pay its subcontractors and suppliers.

Its UK projects include the £58m Eagle House tower and a £110m, 27-storey residential tower on City Road, both in east London.

Ali was introduced to John McCabe through a mutual friend. Representatives from McCabe then travelled to Bahrain to make their pitch.

John McCabe said: “Soon after we approached WGA, it became apparent that they saw the long-term potential of our business and we both saw the benefits of a partnership.”

Ali owns 100% of WGA and uses his family’s money to make investments. The firm’s total assets are $8bn. Ali said: “We play with our own money. Not one penny is from outside.”