Southern Cross Care bought the 24,000 square metre convent in 2009. They have now also purchased eight houses surrounding it.
Carmelite Views will include two bedroom assisted living apartments, a basement car park and space for visiting health staff and personal service providers.
SCC chief executive, Andrew Larpent, said long-term plans for the rest of the site were yet to be decided but construction will start later this year and the new facility will be completed in two years.