(Adds detail, background)

ATHENS, Oct 27 (Reuters) - Greece's privatisation agency said it concluded the 400 million euro ($437 million) sale of Astir Palace, a luxury seaside resort outside Athens, to Turkish-Arab fund Jermyn Street Real Estate Fund on Thursday.

Greece and Jermyn Street agreed on the sale of a 90 percent stake in the Astir Palace hotel complex PALr.AT in 2014. But the deal stalled after Greece's leftist-led government froze privatisations and an administrative court ruled that planned construction violated national law.

Hurdles were removed when Jermyn Street - which represents investors from Turkey, Abu Dhabi, Dubai, Kuwait and other Emirates - and Greece agreed in January on an amended special zoning plan to align the plot's development with the court's ruling.

Greece's second largest lender, National Bank NBGr.AT , which owns most of the shares, and Greece's privatisation agency HRADF cashed in 393 million euros from the sale, HRADF said in a statement.

"The positive conclusion of the Astir sale ... is an excellent example of a constructive and productive cooperation between all state institutions and the private sector, opening the way for the country's growth," HRADF's chairman Stergios Pitsiorlas said in a statement.

Privatisations have been a key condition of Greece's three international bailouts since 2010 but the scheme has produced so far only 3.5 billion euros in revenues, versus an original target of 50 billion due to political resistance and a heavily unionised public sector.

Greece aims at privatisation revenues of about six billion euros by 2018 under its latest financial aid programme.

($1 = 0.9160 euros)

(Reporting by Lefteris Papadimas and Angeliki Koutantou; Editing by Susan Fenton) ((angeliki.koutantou@thomsonreuters.com; +30 210 3376436; Reuters Messaging: angeliki.koutantou.reuters.com@reuters.net))