Former Lever Brothers site sold to commercial developer

The site that once housed the Lever Brothers soap factory in the Studio District is set to be transformed into a new business employment hub.

First Gulf Corp., which has built commercial developments in the GTA since 1975, has purchased the 28.5-acre site near Lake Shore Boulevard East and the Don Roadway for an undisclosed amount.

Unilever Canada, in various incarnations, owned the property since 1892.

In August 2002, Sanford (Sandy) Pensler, president of the New Jersey-based Pensler Capital Corp., leased the site and purchased the soap manufacturing business, which he operated as Korex Don Valley. The company produced Sunlight laundry and dishwasher detergent, Dove soap bars, Snuggle fabric softener and Wisk laundry detergent.

In July 2008, 120 Korex workers - most of whom had between 20 and 40 years of service - walked off the job after refusing to accept deep concessions to their wages and benefits.

Pensler declared bankruptcy in August 2009 and the property has seen little activity since.

John Coyne, Unilever Canada’s vice-president of legal and external affairs, said it took several months to work through the bankruptcy process and reacquire the disused site.

After much consideration about what would be in their best interest, as well as what would be best for the surrounding community, he said Unilever Canada decided to sell the property, which is zoned as “employment lands” by the city.

“We are delighted that First Gulf has acquired the site and that they will bring their significant expertise to the future development of this important downtown Toronto location on the waterfront,” Coyne said, in a Jan. 26 release.

“I think the community will be very pleased with an employment development down there,” he said during a follow-up interview.

Coyne said he’s confident First Gulf will be mindful of its site’s historical significance, notably its landmark factory building.

David Gerofsky, First Gulf Corporation’s CEO, is excited about the possibilities for the vast downtown east property.

“We are thrilled to have acquired this site and we are looking forward to redeveloping it into a vibrant business area to the benefit of all Torontonians,” he said, in a release.

In a phone interview, Gerofsky said the plan is to redevelop the site into a “mixed-use master planned community” that includes a mix of commercial and employment uses as well as a range of amenities and services.

He said First Gulf, which is also in the midst of renovating and expanding a four-acre site at 333 King St. E., which houses the offices of the Toronto Sun and the future headquarters of Coca Cola Canada as well as a two banks, a liquor store and a supermarket, intends to adaptively reuse the iconic factory building on the former Lever Brothers site.

“We think it’s an attractive building,” Gerofsky said, adding his team has already spent a fair amount of time considering options for the 225,000-square-foot structure.

“We intend to redevelop the site and maintain as much as possible of that character.”

A 200,000-square-foot warehouse on the property may or may not be demolished down the line, he said, adding the plan is to open up the site and provide better access to it.

The main entrance to the property is currently off the Don Roadway, however there is a secondary access via a laneway off Eastern Avenue.

At this point, the ink is barely dry on the purchase agreement, Gerofsky said, adding discussions are under way with the City of Toronto’s Economic Development and Culture Division, Waterfront Toronto, the Toronto Port Authority and other stakeholders.

A development application has yet to be submitted to the city’s Planning Department.

“It’ll be a multi-phase, multi-year project. Our goal in the next year or two is to get moving,” he said.

“It’s a massive site. It’s a unique opportunity and I think when we’re done with this development there will be way more jobs at this site than when Unilever was there.”

Councillor Paula Fletcher was cautiously optimistic about the news, but said she’d be keeping a close eye on the future development application to ensure it complements the neighbourhood.

“I’m looking forward to seeing more,” the Ward 30 representative said Friday, adding it’s unfortunate the site couldn’t be used for the TTC’s new light rail vehicle maintenance and storage yard, which is currently being built at the southeast corner of Lake Shore Boulevard East and Leslie Street.

“That would have been a great spot for transit. It’s so close to the waterfront,” Fletcher said, adding a new business district with office space would be a good complement to the emerging West Don Lands community on the other side of the Don River.