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SPH Genting Lane to go from magazines to servers

By Ken Wong - on 29 Jun 2020, 10:54pm

SPH Genting Lane to go from magazines to servers

The company hopes to develop its old facilities into a state of the art data centre. Image courtesy of Google Streetview

With increasing digitalisation, the demand for data centre facilities is also keeping pace.

Singapore Press Holdings (SPH) and Keppel Data Centres Holding (KDCH) have entered into an agreement to create a joint venture company (JVco) to acquire and develop Lot 6205N of Mukim 24 located at 82 Genting Lane into a data centre. 

To recount, this was the operating address of SPH's Media Centre building that housed the SPH Magazines group (which owns and operates the HardwareZone and HWM titles) for several years up until April 2018. The SPH Magazines group has since operated out of the News Centre building and the 82 Genting Lane premises has been mostly unused.

To be called Memphis 1, the JVco will have an issued and paid-up share capital of S$100 with KDCH the majority investor with 60% and SPH investing 40%. Upon incorporation, Memphis 1 will become an associated company of SPH with the goal to acquire the property, develop data centre facilities in it and operate, maintain and manage such data centre facilities.

According to their SGX announcement, SPH said that the transaction will be of benefit to the group because:

  • the Company anticipates that the secular trend toward digitalisation and the movement of data into the cloud will drive strong demand for hyperscale data centres;
  • its partner in the Joint Venture, KDCH, is a seasoned player in the industry with proven data centre development expertise and operational track record;
  • the Proposed Transaction would enable the Group to maximise economic returns and improve the return on capital of an existing asset and to enter and participate in a growing sector; and
  • upon completion of the project, the asset is expected to yield stable, recurring income and contribute to the Group’s earnings.