ST Telemedia and StarHub yesterday announced a partnership to develop MediaHub, currently under construction at one-north.
ST Telemedia will invest $36.9 million for a 70 per cent stake in the facility, previously wholly owned by StarHub.
As a result, ST Telemedia will operate the MediaHub facility. This will lower StarHub's capital expenditure, giving it more financial flexibility. StarHub will hold the remaining 30 per cent stake.
Under 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 will manage MediaHub as a data centre.
MediaHub, slated for completion in the second quarter of next year, will function as a highly specialised media, telecommunications and data centre. In addition, it will be StarHub's convergence hub for its mobile, fixed and pay TV networks.
Both companies hope the synergy between StarHub's extensive facilities management experience and ST Telemedia's global presence will attract 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 this partnership will bring enormous benefits to stakeholders of both companies."
He said the collaboration would allow StarHub "to offer its customers a broader offering in this space within Singapore and beyond".
Commenting on the financial details of the partnership, StarHub chief executive 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."