Slate Asset Management has acquired approximately 800 acres of industrial land and buildings in Hamilton, Ontario from Stelco Inc.
Slate plans to redevelop the site into a world-class industrial park with the potential to create up to 23,000 new jobs across the Greater Toronto & Hamilton Area and inject up to C$3.8 billion into Ontario’s economy, according to an economic study conducted by EY.
Slate said the site’s strategic location presents a one-of-a-kind industrial development opportunity in North America, offering direct access to the Great Lakes and the St. Lawrence Seaway, the U.S. land border, Ontario’s highway system, on-site rail connecting into Ontario’s greater Golden Horseshoe network, as well as nearby international airports in Hamilton and Toronto.
“Having grown up in the area, Brady and I understand firsthand the history and significance this site has had in the Hamilton community and in broader Ontario for well over a century,” said Blair Welch, Founding Partner at Slate.
“Our vision is to restore this site to its highest potential, reimagining it as a world-class industrial park that will continue to play a crucial role in the economy of the city and our province long into the next century,” he added.
Brady Welch, Founding Partner at Slate, added: “This project represents a defining opportunity to reactivate a massively underutilized parcel of land that has global industrial relevance. We are committed to working in close partnership with local institutions, government, and community groups to deliver a state-of-the-art industrial park that is modern and sustainably developed, attracting world-class tenants and restoring economic vitality to the area.”
Under the terms of the transaction, Slate has agreed to a long-term sale-leaseback of 75 acres of land and 2 million square feet of buildings for 35 years to Stelco.
The remaining 725 acres will be prepared by Slate for development into highly coveted, Class A industrial product. The site’s current zoning allows for a wide range of industrial uses with the potential to develop up to 12 million square feet, creating an unrivaled industrial development pipeline.
Slate will also invest into the environmental protection and remediation of the site, ensuring that 800 acres of land is clean and safe for workers and 3,400 metres of waterfront along Lake Ontario are reactivated.
The Greater Toronto & Hamilton Area is located at the western end of Lake Ontario within the Golden Horseshoe, an industrialized region of nearly 10 million people surrounding the city of Toronto, which accounts for 20 percent of Canada’s GDP. The area has a diverse economy, from manufacturing and steel production to financial services, technology, health care, and tourism.
The Golden Horseshoe also has strategic access to major U.S. markets, with a population of 130 million people within a 500-mile radius. The region has two international airports serving 200 destinations in 55 countries and benefits from Canada’s international trade agreements that provide access to nearly 1.7 billion consumers worldwide with a combined GDP of more than US$62 trillion.