Ryman Healthcare says it has secured a 4.5ha Henderson site in west Auckland where it will develop accommodation for about 400 elderly people.
Andrew Mitchell, development manager, said part of the site near the Lincoln Rd shopping precinct was owned by the Laidlaw College, previously called the Bible College of New Zealand.
But that site was surplus to the organisation's needs, the Ryman statement said.
Ryman plans independent residences, a hospital, rest home and dementia care facilities.
"We think there's a real shortage of retirement living options housing in the area - and demand will only increase as the retired population grows," Mitchell said.
More than 107,000 people are in the immediate area, including more than 10,000 retirees, he said.
"The village will mean that west Auckland people will no longer have to look elsewhere for somewhere to live in their retirement - they can stay in the place they love close to their families and friends," he said.
The new development will free up local homes for resale, he said.
People who buy Ryman licences to occupy lose 20 per cent of their original purchase sum over time and pay a weekly fee.
They do not own the properties and cannot sell them, instead relying on Ryman to re-sell them on their behalf once they pass away or move to another part of a village.
People who own the licences to occupy Ryman places do not get any capital gain - Ryman gets that on the re-sale.
These aspects apply to most retirement villages throughout New Zealand, all owned by large corporate entities, often listed on the NZX and extremely popular with investors due to massive profits.
Ryman said a cafe, gym, bowling green, hairdressing salon, reflection room, movie theatre, bar and an indoor swimming pool are planned.
Debbie McClure, Ryman sales and community relations manager, said the village would be named after a famous west Aucklander.
"The best suggestions come from the people who know the area and its history well. We'd love to hear any suggestions," she said.
The new Henderson development will be eleventh for Ryman in greater Auckland.
"Ryman is developing other villages at Hobsonville, Greenlane, Lynfield and Devonport and has existing villages in St Heliers, Remuera, Howick, Pukekohe, Birkenhead and Orewa," the company said.
See the Henderson site: