McCarthy & Stone is set to develop 43 owner-occupied retirement homes in Weybridge, Surrey.
The development, on the site of a former office building on Queens Road, was granted planning consent in December.
It will include one- and two-bedroom flats with shared services and 24-hour support from an on-site estate manager.
The Weybridge site, which has a GDV of £21.5m, will bring McCarthy’s portfolio to 300 developments under management.
Gary Day, land and planning director at McCarthy & Stone, said: “This will help meet the needs of the elderly in Surrey at a time when demand for this type of retirement accommodadtion is increasing.
“Despite the remarkable shortage of specialist retirement housing in the UK, the number of people aged 65 or over is rapidly increasing, and almost two in five are interested in downsizing.
“The announcement of our Weybridge development is further evidence of the fact that we are committed to addressing this shortfall.”
Construction on the site is expected to start in late 2018.