Car dealership owner Andrew Simms said it was a "privilege" to help the Dunedin community by providing a chunk of the necessary funding for the shelter’s extension and there had "never been more of a time where the community needed to look after itself and each other".
He praised the ODT for its "vital local reporting on the social issue of homelessness and the shelter’s needs" that had enabled him to reach out and discuss giving.
"Without question, the ODT was pivotal in enabling my giving. I was blissfully unaware of its work and the extent of homelessness.
"I felt quite ashamed when I read about it. I knew homelessness was a problem elsewhere, but not here."
Mr Simms, who is also chairman of the Mosgiel Taieri Community Board, said the ODT’s stories "weighed heavily" on his conscience.
A meeting with the shelter’s manager, David McKenzie, followed that "completely ruined my Christmas, contemplating the excesses that many of us take for granted, while others are doing the hard work to support the most vulnerable in our Dunedin community".
The extension, designed by Gary Todd Architecture, was originally priced at $584,000.
However, Stewart Construction managing director David Grant said he was contacted by Mr Simms and asked to "jump on board" and deliver the build at cost.
Mr Simms reached out to building suppliers and a dozen had provided materials and services for free or discounted, reducing costs by about $150,000.
The shelter’s extension is expected to be completed by September, enabling it to sleep 12 people a night, up from six. It will add an improved kitchen, living space and staff office space.
The shelter provides homeless people with emergency accommodation for five nights and sometimes longer depending on circumstances. As well as a warm, clean bed, it also provides dinner, breakfast and clothes-washing facilities.
Mr McKenzie said he was "extremely excited" to get Mr Simms’ donation and it was a "huge sense of relief" the building project could go ahead.
Shelter board chairwoman Jenny Turnbull said she found it "amazing" to receive all the donations, but stressed more funds were needed to support ongoing costs of the shelter and other homelessness services in the city.
The shelter is having an open day this Saturday from 11am to 3pm. People are invited to come along and have a tour.