SINGAPORE - ST Telemedia and StarHub on Wednesday announced a partnership to develop MediaHub - a highly specialised media, telecommunications and data centre, slated for completion next year.
ST Telemedia will invest S$36.9 million for a 70 per cent stake in the under-construction facility, which was previously wholly owned by StarHub, a company release stated. It will also operate and manage the facility as a data centre.
This will lower StarHub's capital expenditure, giving it more financial flexibility, the release stated. StarHub will hold the remaining 30 per cent stake.
Under the terms of the partnership StarHub will sublet at least 65 per cent of the facility's floor area. It will also house its social analytics lab, adaptive production studio and media headend there. ST Telemedia on its part will manage MediaHub as a data centre.
MediaHub, which is slated for completion in the second quarter of 2016, will be StarHub's convergence hub for its mobile, fixed and pay TV networks.
Both companies hope that the synergy between StarHub's extensive facilities management experience and ST Telemedia's global presence will attract both local and international customers to MediaHub.
Mr Sio Tat Hiang, Executive Director of ST Telemedia, said: "ST Telemedia is delighted to be teaming with StarHub to develop a state-of-the-art media and data centre facility. We believe that this partnership will bring enormous benefits to stakeholders of both companies."
Commenting on the financial details of the partnership, the CEO of StarHub Mr Tan Tong Hai said: "As we have paid for the land and made some progressive payments for the construction, this transaction is not expected to have a material impact on StarHub's financials for 2015."