Whyalla steelworks owner Sanjeev Gupta is paying huge home loan interest on his Sydney homes, according to reports

Whyalla steelworks owner Sanjeev Gupta is paying eye-watering interest rates on his luxury Sydney homes.

British businessman Sanjeev Gupta was forced into the private credit market when he refinanced his personal loans last year, The Australian newspaper reporting banks around the world declined a mortgage on his Sydney properties worth a combined $63.5m.

Whyalla Steelworks owner Sanjeev Gupta is paying eye-watering interest rates on his luxury Sydney homes.

The Australian reported that Mr Gupta was forced into private credit markets to borrow $38.1m at rates of around 12.5 per cent.

It means the owner of GFG Alliance and the Whyalla steelworks is paying an estimated $400,000 bill to service the monthly interest on his Sydney homes, according to the report.

This followed major banks declining a mortgage request from the British businessman on his Potts Point mansion and a three-bedroom waterfront apartment at high-end Woolloomooloo’s Finger Wharf.

The Australian reported that Mr Gupta was forced into private credit markets to borrow $38.1m at rates of around 12.5 per cent, according to a term sheet for the debt circulated last year.

While the sheet did not name Gupta, it said the term sheet related to an ultrahigh-net-worth sponsor who was the majority owner of a global steel business and who was “currently subject to offshore regulatory investigations”.

It was circulated at the same time that Mr Gupta was refinancing his Potts Point mansion to buy the Finger Wharf apartment.

Sanjeev Gupta poses in his city office on the 10th floor of the EY building in Adelaide last year. Picture Mark Brake

Earlier this week it was revealed that Mr Gupta won a legal battle to upgrade the Sydney mansion to include a cinema, whisky and yoga rooms after amendments were made to an original renovation plan.

The original plans that included a basement garage with an access tunnel were listed to cost $10.04m.

Meanwhile, the state government has revealed Mr Gupta’s GFG Alliance owes “tens of millions” to South Australian suppliers and businesses, $15m in SA Water bills and “tens of millions” in unpaid royalties.

Mr Gupta said “the GFG business in Whyalla is currently navigating one of the most challenging periods in its history, and we understand the anxiety this creates for our people and stakeholders about the future.”

“Despite these challenges, rest assured my commitment to Whyalla will not be shaken,” he said.

“GFG has invested vast sums of money to keep Whyalla going and Whyalla will remain our highest priority.’’

Last week around 400 workers were stood down at Mr Gupta’s Tahmoor Coal operation in New South Wales, with reports saying the business was affected by coal prices falling dramatically and suppliers had cut off deliveries overdue debts.

On Monday, ratings agency Moody’s downgraded the debt on Gupta’s Infrabuild steel business over concerns it was running out of cash.