Slate Asset Management's $518 million purchase of 800 acres in Hamilton, about 65 kilometres southwest of Toronto, establishes plans to create a massive industrial park on land once owned by steel producer Stelco.
The June 2022 transaction at 386 Wilcox St. earned a 2023 CoStar Impact Award for the sale/acquisition of the year in Toronto, as judged by real estate professionals familiar with the market.
“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, who grew up in the area, in a statement.
The site 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% of Canada’s GDP.
The area has strategic access to major U.S. markets, with a population of 130 million people within a 500-mile radius, and also includes on-site railways, deep water ports and access to the Atlantic Ocean via the St. Lawrence Seaway.
According to data from EY, Slate’s planned redevelopment could create up to 23,000 unique jobs across the Greater Toronto and Hamilton Area and inject up to $3.8 billion into Ontario’s economy.
Slate began conversations to acquire the site at the end of 2020 when many investors were slowing down as global markets were thrown into a state of paralysis by the outbreak of the COVID-19 pandemic.
The site, which Stelco had occupied for close to a century, was underutilized, with only a tiny portion of the land and buildings actively used for production, while the rest sat derelict.
Slate negotiated a long-term sale-leaseback with Stelco comprising 75 acres of land and 2 million square feet of buildings for 35 years. As part of this process, Slate had to work closely with Stelco to ensure that its operations could continue effectively during the interim and throughout the site's redevelopment.
About the Project: Slate envisions a complete reimagining of the site with redevelopment bringing new industry to Hamilton and supplementing traditional steelmaking jobs with more advanced manufacturing and logistics opportunities that will provide high-quality employment and be more symbiotic with the surrounding neighbourhoods.
What the Judges Said: "The impact of this acquisition will continue for years. There is plenty of risks associated with the acquisition. The site has multiple challenges/opportunities," said Keith Reading, senior director of research at Morguard.
They Made It Happen: Blair Welch, founding partner of Slate Asset Management. Brady Welch, founding partner of Slate Asset Management. Scott Antoniak, managing director of Slate Asset Management. Doug Podd, managing director of Slate Asset Management. Steven Dejonckheere, senior vice president of Slate Asset Management. Alan Kestenbaum, Executive Chairman, Chief Executive Officer of Stelco Holdings.
