Slate Asset Management has acquired nearly 800 acres of land and buildings in Hamilton with the aim of converting the property into a world-class industrial park.

The Toronto-based real-estate investment company announced the purchase of the lands from Stelco on June 1. It intends to redevelop the site with the potential to create up to 23,000 new jobs across the Greater Toronto & Hamilton Area and inject up to $3.8 billion into Ontario’s economy.

The sale price is quoted at $518 million.

Slate says 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.”

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 Class-A industrial space. 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.

“Stelco is thrilled to partner with Slate on this transaction,” said Stelco Executive Chairman and CEO Alan Kestenbaum. “After reacquiring the lands in Hamilton, we have been working to unlock value and find the right partner to redevelop the lands upon which Stelco was founded. We look forward to continuing to operate in the community that we have called home for over 100 years as it enjoys new growth opportunities.”

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.

“By incorporating best practices around sustainable infrastructure, construction, and social value across the lifetime of this project and its end use, we can redefine the legacy of this site and reintroduce it as a new standard bearer for modern industry,” said Bozena Jankowska, Global Head of ESG at Slate. “We look forward to collaborating with local and global organizations to raise the bar for this industrial redevelopment in every sense and demonstrate that we can drive economic growth while ensuring environmental and social sustainability.”

The transaction closed on June 1.