A 90-bed aged care centre is expected to open in Westmeadows late next year.
Work on the $160 million Dimboola Road project started last month, creating about 100 jobs.
The Baptcare-managed centre is part of the redevelopment of the 1980s-built Mews public housing estate.
Known as Valley Park, the redevelopment will also include 110 social housing properties, 210 private homes and 34 independent living units.
Prior to the redevelopment, there were 94 public housing properties on the estate.
The redevelopment is being jointly delivered by the state government and Frasers Property, while Baptcare will contribute about $20 million to aged care development. The aged care centre will comprise one 12-storey building and a 13-storey building.
Health and carers parliamentary secretary Mary-Anne Thomas said the aged care centre would address the need for supported housing for Hume’s senior residents.
“This development is about meeting the growing need in the wider Broadmeadows and Westmeadows area for affordable aged care. Too many people are living alone in two or three-bedroom homes without appropriate support,” she said.
“Older members of our community will be able to age in a community they are familiar with, close to people they know, and of course, close to facilities.
“This development overall ensures people have access to housing that allows them to age well.”
Baptcare acting chief executive Brent Dankesreither said the development would give elderly residents a sense of independence.
“This development will rejuvenate and revitalise the Westmeadows community, addressing the unmet need for aged care beds,” he said.