Remarkables Park Ltd is providing the funding boost to help with the construction of the new purpose-built building on Pin Oak Ave, at Remarkables Park.
The 900sqm, two-storey facility would provide room for a combined congregation space, food bank, Family Store, and multi-function space, along with offices and support facilities for staff and community ministries.
Salvation Army chief secretary Colonel Gerry Walker said due to Covid-19 there was a "substantial increase" in the number of people who had fallen on hard times and they "need us now more than ever before".
"The new building has been carefully designed to bring together sections of the Army and enable the expression of our mission to continue to support individuals in need, some of who are hungry, homeless, feeling overwhelmed or have other needs."
Remarkables Park executive chairman Alastair Porter said the company was pleased to be able to help the Salvation Army, which provided "essential social services" in the community, and built on the company's other community initiatives, which included a "significant expenditure" on trail development, investment in the Remarkables Market and playground, and help with Wakatipu High School and the Frankton Library.
Planning was underway for the new Salvation Army facility - construction was expected to begin by the end of this year, and completed by the end of 2021.
