Robin Khuda, the billionaire founder of data centre powerhouse AirTrunk, is expanding his passion project of luxury apartment development in Melbourne, with plans for a $50 million project in the popular beachside suburb of St Kilda.
Khuda’s project is one of three major developments under way in Fitzroy Street with Ondas joining property developer Fortis and investment firm ERDI, which are looking to realise the potential of the strip and investing a total of about $196 million between them into its revitalisation.
Although the $24 billion sale of AirTrunk to Blackstone two years ago consolidated his status as a billionaire, Khuda remains in charge of the data centre giant while busily building up a portfolio of projects for his side hustle, boutique property development firm Ondas. He’s already notched up $450 million in gross sales across his apartment developments.
The St Kilda venture follows his recent purchase of two properties in Sydney’s Mosman and Melbourne’s Toorak for around $30 million. Khuda has now secured planing approval for 16 residences and commercial spaces across four heritage apartment blocks in St Kilda’s Fitzroy Street.
Running from Punt Road to The Esplanade, Fitzroy Street is a hub for restaurants, cafes, retail outlets and historic buildings such as the 1880s-built George Hotel, Victorian Pride Centre and the former Gatwick Hotel.
“If you look at St Kilda, it’s such a beautiful suburb next to the beach, a bit run down as well, and I just took a long-term view,” Khuda told The Australian Financial Review. “I think there is a gap in the market right now. [Older people] want to live somewhere easy, accessible as well. So I think that’s really what Ondas is focusing on.”
Fortis head of acquisitions Jordan Winada said all three developers had in common their shared view of the potential of the well-known seaside boulevard.
“But it’s one of the streets in Melbourne that hasn’t had a lot of love for a long time,” he said. “So we’re looking to really all inject a bit of our own vision and ethos back into the street.”
Fortis, owned by parent company Pallas Group, is leading the group’s collective advocacy for the strip and has already started building its $131 million residential and commercial development, The Gild, at 61-73 Fitzroy Street.
Spread across a 2660-square-metre landholding, The Gild will offer a mix of one-, two-, and three-bedroom residences as well as retail and hospitality premises, scheduled to be completed in the first half of 2028.
Meanwhile, ERDI is spending $15 million to transform Saint Kilda Beach Hotel into Novotel St Kilda, with 80 renovated guest rooms, meeting spaces and a new conference facilities that can accommodate up to 140 guests, set to open in September.
After the redevelopment cost is covered, all profits from the hotel will be funnelled into the developer’s charitable foundation which supports local organisations such as Sacred Heart Mission, St Kilda Mums and Mirabel Foundation, the developer said.
“This project is about more than bricks and mortar – it’s about giving back,” ERDI chief executive Ricky Jeffs said. “We’re proud to be part of a collective that values community, and we see this as an opportunity to strengthen local ties while celebrating everything that makes St Kilda unique.”
Port Phillip Mayor Alex Makin said he welcomed the investment in Fitzroy Street’s future while preserving the spirit of the suburb.
“With construction under way and more announcements to come, this marks an exciting chapter for Fitzroy Street – one that blends heritage with innovation and community with culture,” he said.
