An $8 million development will see 21 independent units and a community hub completed in Golden Square by September.
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The Mercy Health Golden Rise Seniors Living project near Specimen Hill Road will introduce a new seniors living community to Bendigo and be co-located with the Mercy Place Bethlehem residential aged-care home.
Mercy Health group chief executive Stephen Cornelissen said plans for the development began in 2016.
"It's been a long time in the making," he said. "We had land a long time and wanted to develop independent living units here. If (initial) sales go well, and indications are they will, we can look at going to 176 units on this site.
"Sisters of Mercy has been in Bendigo for 100 year and we are committed to where they have been in past. With our desire to have independent living units and and aged care together on one site, Bendigo was obvious choice."
Mr Cornelissen said it was encouraging to be able to continue construction during the COVID-19 pandemic.
"We have been keen to work with local builders and contractors to contribute to the economy during the COVID-19 situation," he said. "We are grateful to the builders who have done an amazing job to keep this going.
"The 21 units will be finished by Septembers and we will be starting to sell as soon as we get occupancy certificates."
Retirement village manager Candace Long said Mercy Health Bethlehem in Bendigo has a fantastic reputation.
"This has always been a premiere site and Bendigo is a very livable city," she said.