Summerset Group, which is widely expected to list on the NZX later this year, has received Overseas Investment Office approval for the purchase of the former Gracefield Living retirement village in Nelson.
Development of the site is expected to start next week, the company said today (Tuesday).
About $80 million has been budgeted for the development, which is expected to include more than 200 homes.
Summerset is also waiting for Resource Management Act approval before starting the development of a brand new $80 million village in Dunedin, which will be its second South Island village.
The company is developing four other villages in Manukau, Warkworth, Hastings and Hamilton.
Summerset is 98 per cent owned by the Australian private equity company, Quadrant, whose investments are worth around A$1.5 billion.
The company has not specifically said that it will seek a listing, but has said it is looking at its capital structure.
Investment banking sources say a public float is likely before the end of the year.
Summerset has raised its profile in recent months, and has started a television advertising campaign.
