Mercy Health has commenced construction on a new integrated seniors precinct in Rosebud to bring together retirement living, home care and residential aged care in one community, helping meet growing demand for seniors housing and support on the Mornington Peninsula.
The Mercy Health Rosebud Integrated Seniors Precinct will include 71 retirement living homes and 124 residential aged care suites, accommodating more than 200 residents when complete.
The sod-turning ceremony brought together residents, families, staff and community members, and included a site blessing by Reverend Andrzej Madry, reflecting Mercy Health’s mission and longstanding commitment to providing compassionate care and service to older people.
A new chapter in a long history of care
This marks the start of the next chapter in the site’s 75+ year history as a place of care for older Rosebud residents.
Originally home to Lotus Lodge, a holiday camp overlooking Port Phillip Bay, the property was purchased by the Victorian Government in 1951 to establish a self-contained community for older people. It later became Rosebud Residential Aged Care Services and Southern Cross Care Rosebud, before Mercy Health took over operations at Mercy Place Rosebud.
Mercy Health Chief Executive of Healthy Ageing Gavin Young said the new precinct would build on this legacy while providing a contemporary approach to ageing.
“As people grow older, their needs can change, but they shouldn’t have to leave behind the people, places and community that make life meaningful,” Mr Young said.
“It is an important expression of Mercy Health’s Healthy Ageing approach – putting the person at the centre and creating a place where people can live well throughout their ageing journey.”
The precinct will feature a contemporary small-household model of residential aged care, alongside shared amenities including an indoor pool, gym, restaurant and café, and landscaped outdoor spaces.
Investing in Rosebud’s future
Demand is growing as the Mornington Peninsula’s population ages, with 33.2 per cent of residents in the broader Rosebud-McRae region aged 65 and over. The Peninsula’s retirement-age population is forecast to grow by 18.4 per cent between 2021 and 2031, increasing demand for housing, care and services.
The development forms part of Mercy Health’s broader investment in the Mornington Peninsula and complements the region’s growing healthcare system, including the nearby Rosebud Health Hub.
The precinct has also been designed with sustainability in mind, including fossil-fuel-free operations, energy-efficient design, water reuse and biodiversity measures, alongside native coastal landscaping and Indigenous vegetation.
Construction is expected to be completed in late 2028, with the first residents expected to move in from early 2029.

(from left) Gavin Young, Chief Executive Healthy Ageing, John Corcoran AM (former Mercy Health Board member), Gabrielle McMullen AM (Mercy Ministry Companions trustee), Paul Mitchell (Knights of the Southern Cross), Virginia Bourke (Mercy Health Board Chair), Angela Nolan (Group CEO Mercy Health), Frank Materia (LU Simon builders), Anthony Loschiavo (Mercy Ministry Companions)

(from left) Virginia Bourke (Mercy Health Board Chair), Father Andrzej Madry CR, Parish Priest of Good Shepherd Parish, Mulgrave, and St Justin’s Parish, Wheelers Hill, and Episcopal Vicar for the Southern Region of the Archdiocese of Melbourne, Angela Nolan (Group CEO Mercy Health)