The redevelopment will see a 120-bed aged care home added to the site in Kilsyth, 26km east of the Melbourne CBD, based on the Australian Unity Better Together household model.
A new community centre will also be built for the residents of the existing village which houses 198 one- and two-bedroom independent living units which sell from $435,000.
The redevelopment is expected to begin by the middle of 2021.