Hindustan Construction Co. said Monday it agreed to acquire a 66% stake in Swiss real estate developer Karl Steiner AG for about $33 million in cash to gain a foothold in Europe and the Middle-East.

The deal will also help the company expand into the fast-growing buildings construction segment in India, HCC Chairman and Managing Director Ajit Gulabchand said at a press conference.

The Indian company gets most of its revenue from constructing roads, bridges and other infrastructure projects. The deal comes at a time when demand for commercial and residential buildings is recovering as Asia's third-largest economy expands at a fast pace.

Mr. Gulabchand said the acquisition will also open the Swiss and European markets for HCC and will help provide access to better technology and engineering capability.

Zurich, Switzerland-based Karl Steiner has an 18% share in the Swiss real estate market and has developed 32 million square feet of land so far, including 1,200 residential projects and 540 office buildings.

The deal is likely to be completed in the April-June quarter. HCC said it will acquire the 66% stake through issue of new shares, but it didn't elaborate.

Praveen Sood, HCC's group chief financial officer, said he expects the acquisition to contribute to the company's net profit from the next fiscal year that begins April 1.

HCC will buy the remaining 34% stake from Karl Steiner's owner and chairman, Peter Steiner, in 2014 at a price that will be arrived on the basis of the Swiss firm's earnings in the 2010-2013 period.