J&M McCabe Properties Limited, the holding company of McCabe Group, a Dublin-based construction company, has formed a strategic partnership with Western Gulf Advisory (“WGA”), a Bahrain-Swiss-based investment company in a transaction worth £300M that includes the company’s debt.
The partnership will enable McCabe’s management team to maintain its focus on running the business whereas WGA will act as the financial partner. From the total investment amount of £300 million WGA has provided £40 million to fund the completion of its existing projects.
McCabe is currently responsible for a number of high profile developments under construction in Ireland and the UK, including Prospect Hill in Finglas and the 4* Marriott Hotel in Asbourne, Co Meath. In the UK, McCabe’s existing developments include 7 Apartments in Arlington Street London and 32 Units in Clapham along with a 27 Storey Tower on City Road in London.
WGA, which is financing the transaction from its own resources, has committed to maintaining its stake in McCabe over the long-run, providing the company with the necessary financial stability to ensure it is in a prime position to benefit from improved market conditions.
Commenting on the partnership, John McCabe, founder and Managing Director of J&M McCabe Properties Limited, said: “We are delighted to have agreed this partnership with WGA. 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 entering a partnership agreement with clearly defined roles. With the help of a strong financial partner in WGA, we will be able to bring our existing projects to market as well as acquire additional assets and contracts.
“We have been in business for nearly forty years and with WGA’s backing we are in a strong position to maximise the value of our assets and build our reputation as a high quality developer.”
Ahsan Ali Syed, founder and President of WGA added: “We are very pleased to have entered into a long term partnership with McCabe. This is a well managed business with a long track record of success and as the economic cycle starts to move into the upturn we believe it has a strong future ahead of it.
“This agreement marks WGA’s first investment in Ireland and we are developing a long term plan for investing in the country across a number of sectors. At a time when many of Ireland’s banks are facing severe lending restrictions, many businesses employing large workforces are entering a distressed state despite being fundamentally sound and having considerable growth potential. We look forward to extending our support to other Irish businesses facing these types of challenges.”