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Tue 4 Mar 2014 03:21 PM

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UAE firm inks $214m financing deal for London building

Integrated Alternative Finance agrees bridging facility to fund acquisition of former hotel building

UAE firm inks $214m financing deal for London building
Jassim Alseddiqi, Chief Executive Officer, Abu Dhabi Capital Management

Integrated Alternative Finance, a wholly owned subsidiary of Abu Dhabi Capital Management (ADCM), on Tuesday announced that it has secured an AED786 million ($214 million) bridging facility to fund the acquisition of a former hotel building in London.

1 Palace Street is a Grade II listed former hotel building, located close to Buckingham Gate in the heart of London.

It comprises 245,000 square feet of development space which will produce 78 luxury apartments, a restaurant and health centre; all with views of Buckingham Palace.

The facility was provided by Omni Capital and will fund the landmark acquisition of 1 Palace Street which is the largest redevelopment project in Prime Central London.

Jassim Alseddiqi, CEO of IAF’s parent, ADCM, said: “This is a unique funding arrangement which complements the landmark nature of 1 Palace Street. Integrated Alternative Finance, in partnership with Eastdil, was able to secure the most appropriate lender with considerable expertise in the super prime Central London market.

"Its experience in negotiating appropriate terms and finalising this significant facility were integral to the success of the eventual funding.”

Abu Dhabi Capital Management is focused on alternative investments in the GCC and UK.

ADCM launched its private equity business in January 2011, through which it seeks to acquire equity interests in businesses in various sectors in the MENA region.

In 2013, ADCM, through its special purpose Spadille, acquired luxury residential London developer Northacre. Northacre has designed, developed and marketed over £1.5bn of prime residential sites in London, and is the development manager of the 1 Palace Street project.

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