The National Bank of Abu Dhabi (NBAD) said it has completed a Dh1.8 billion ($489 million) financing deal with UAE-based Abu Dhabi Financial Group for one of the largest redevelopment projects in prime Central London, UK.

The 1 Palace Street comprises 271,051 sq ft of space adjacent to Buckingham Palace in the exclusive area between St James's, Mayfair and Belgravia in London.

The development of 72 luxury apartments, a restaurant and health centre, is expected to be completed in late 2017, said a statement from NBAD.

Integrated Alternative Finance (IAF), a subsidiary of Abu Dhabi Financial Group (ADFG), sourced, structured and arranged the deal with NBAD. The loan was structured through a combination of senior debt and a preferred equity tranche underwritten by IAF, it added.

Farid Barakat, the country chief executive and managing director of NBAD's London Branch, said: "Providing financing to the exclusive residential development at 1 Palace Street is a good proposition for us."

"ADFG has put together a compelling strategy to create one of Europe's foremost luxury properties in London's most desirable postcode. We look forward to collaborating with ADFG further as this landmark project becomes reality," he noted.

Jassim Alseddiqi, the chief executive of ADFG, said its work with NBAD on securing the financial deal had been very rewarding, particularly given the high-profile, ambitious nature of the project.

"The transaction will allow 1 Palace Street to become one of the most desirable addresses in the world and will set a new standard for ultra-prime residential developments in London. We have established a very strong relationship with NBAD, and the completion of an international deal, outside of the Middle East, is testament to this," he added.

Headquartered in Abu Dhabi, ADFG is a multi-billion dollar alternative investment firm with operations encompassing investments, asset management, advisory and research, financing and structuring solutions, securities trading, and real estate development.-TradeArabia News Service