ST Telemedia to take majority stake in JV and operate facility
Partnership will help StarHub lower capex
SINGAPORE Technologies Telemedia (ST Telemedia) and StarHub have announced a joint venture partnership to develop the latter’s MediaHub facility that is being constructed.
ST Telemedia, through its wholly owned subsidiary, STT GDC Pte Ltd, will invest approximately S$36.9 million (US$26.9 million) for a 70% stake in Shine Systems Assets Pte Ltd (SSAPL), which holds MediaHub.
StarHub will own the remaining 30% stake in SSAPL. Prior to this partnership, SSAPL was wholly owned by StarHub.
In a statement, ST Telemedia and StarHub said they are both committed to further their investments to build and develop MediaHub into a state-of-the-art facility.
MediaHub is being constructed with the intended use as a highly specialised telecommunications, media and data centre facility. It will be StarHub’s convergence hub for its fixed, mobile and pay TV networks.
It is located at [email protected]-north where the Singapore Government intended the country’s first digital media hub to be, and where emerging media technologies, content, services and applications will be developed, produced, financed and distributed to the world, ST Telemedia and StarHub said.
“MediaHub will be a key facility for StarHub,” said its chief executive officer Tan Tong Hai (pic).
“This partnership with ST Telemedia will significantly reduce our capex (capital expenditure) commitment as we will own only 30% of MediaHub.
“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,” he added.
Under the partnership, the facility will be managed and operated by the STT GDC-led JV as a carrier-neutral and highly secure Tier 3 data centre facility which will achieve the BCA Green Mark GoldPlus certification for Data Centres.
StarHub will sub-lease space of not less than 65% of the total gross floor area of the facility. Its media headend, social analytics lab and adaptive production studio will be housed there.
MediaHub is the second data centre asset in Singapore for ST Telemedia and the latest addition to the company’s global data centre footprint.
Last month, ST Telemedia completed its investment into UK-based Virtus Data Centres, giving it a foothold in London, a key global tier-one data centre market.
In March this year, ST Telemedia announced its acquisition of land at Defu Lane to develop its flagship data centre in Singapore and unveiled its intention to develop a unique data centre business globally.
“We believe that this partnership will bring enormous benefits to stakeholders of both companies,” said ST Telemedia executive director Sio Tat Hiang (pic).
“The collaboration will provide StarHub with greater financial flexibility for fund deployment and value enhancement but more importantly, the ability to offer its customers a broader offering in this space within Singapore and beyond.
“It will also allow ST Telemedia to expand its Singapore data centre footprint in addition to our previously announced Singapore flagship asset,” he added.
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