Aldar Properties has announced the purchase of Daman House, a commercial office building in Abu Dhabi, for AED 330 million ($89.9m).

The transaction is part of Aldar’s commitment to growing its recurring portfolio through an AED 3 billion ($816.7 m) investment programme in new and existing revenue producing assets.

The company believes that the programme will help it achieve a new target of AED 2.2 billion ($598.9 m) net operating income (NOI) by 2020.

Daman House comprises of 23,000 sqm GLA of Grade A commercial space, fully leased on a long-term contract to a single government related entity.

In the latter half of last year, Aldar invested AED 410 million in the extension of Al Jimi Mall, which will bring an additional 33,000 sqm GLA of retail space to the existing 43,000 sqm GLA trading space. The move will also bring a renovation and facelift for the existing mall.

Aldar has also invested AED 160 million on the construction of Al Mamoura School in Abu Dhabi, which is expected to be completed in 2016.

The three transactions make up 30% of Aldar’s investment programme commitment, at a total value of AED 900 million ($245m). They are expected to contribute approximately AED 90 million ($24.5m) to NOI once the assets are fully stabilised.

“The acquisition we are announcing today fits perfectly with our strategy of increasing our recurring revenue base and demonstrates our ability to take advantage of value accretive opportunities when they arise,” said Mohamed Al Mubarak, Chief Executive Officer at Aldar Properties.

“The acquisition underscores our ability to successfully execute against our strategy to grow recurring revenues. I firmly believe that our sound financial position, strong capital structure and proven asset management capabilities will allow us meet our NOI target of 2.2 billion dirhams in NOI by 2020.”