WATERLOO — The stars of the LPGA will tee it up at the Grey Silo Golf Course in 2012.

The inaugural Manulife Financial LPGA Classic, with a purse of $1.3 million, will take place June 18-24 at the city-owned course. The Canadian-based financial services company has signed a three-year deal to sponsor the event, with options for 2015 and 2016.

Hugh Morrow, CEO and chair of Toronto-based Sports Properties International, said a study he conducted earlier this year with Alabama-based Bruno Event Team came to the conclusion the tournament would pump $20 million a year into the local economy. He also said Waterloo Region was always his first choice when he began toying with the idea of staging the event more than two years ago. He approached the LPGA about a year ago and brought Manulife on board after that.

“This community has a very, very strong history of supporting local, regional, national and international events, making our decision to focus on Waterloo very, very easy,” said Morrow, who is hoping more than 60,000 spectators will take in the event.

Canadian LPGA player Alena Sharp was also on hand for Tuesday’s announcement at the Waterloo Inn, along with Manulife senior vice-president, distribution, Brian Gooding, and LPGA chief marketing officer Jon Podany.

LPGA stars Michelle Wie, Cristie Kerr, Ai Miyazuto, Paula Creamer, Brittany Lincicome and Yani Tseng — the world’s No. 1 player — sent videotaped messages of support and Natalie Gulbis spoke on a conference call from New York. The majority of the LPGA’s top players are expected to be in the 144-player field next year, said Morrow.