Marking its entry into the European real estate market, Hindustan Construction Company (HCC) has bought two-third stake in Swiss real estate firm Karl Steiner AG for nearly Rs. 150 crore. The all cash deal would also unlock the Gulf markets for the company.

Subject to approval, the acquisition would give Ajit Gulabchand-led HCC an entry to the high rise building construction segment. As per Mr. Gulabchand, "We agreed to acquire a 66 per cent stake in Karl Steiner AGKarl Steiner AG (KSAG) to enter the high-rise building construction arena."

HCC expects to wrap the deal by the first quarter of the next fiscal.

As per agreements, HCC would acquire the remaining stake in Karl Steiner in 2014 from the company's sole owner Peter Steiner, who will also remain as the company's Vice-Chairman till that time. Selling price for the balance stake would be worked out in 2012-13 depending on the company's performance during the period.

HCC, which currently has a strong order book of Rs. 19,000 crore as compared to a total debt of Rs. 2,500 crore, also has plans to strengthen its presence in the domestic market.