Slate Asset Management says it has acquired about 320 hectares of industrial land and buildings in Hamilton, Ont. from Stelco Inc.

The investment firm says the $518-million deal it signed with the steel company closed today.

Slate plans to redevelop the site into an industrial park that a study from Ernst & Young said could create up to 23,000 new jobs and $3.8 billion for Ontario's economy.

The transaction includes an agreement from Slate to a long-term sale-leaseback of 30 hectares of land and 185,806 square metres of buildings for 35 years to Stelco, with renewal options for five further 20-year terms. 

The remaining 290 hectares will be readied by Slate for industrial development.

Slate says it will also invest in the environmental protection and remediation of the site to ensure the land is clean and safe and 3,400 metres of waterfront along Lake Ontario are rehabilitated.