Cardiff's Penylan House Jewish nursing home is set to move into new premises from September 2012 following an agreement with Welsh housing association Linc-Cymru.
A planning application has been submitted to Cardiff County Council to redevelop the existing home into a larger space for both Jewish and non-Jewish residents, with the intention of starting the conversion in January.
The 73-bed home, equipped with a kosher kitchen, will have two wings, with one area reserved for up to 30 Jewish people.
The original 1960s building will be demolished. Construction of the replacement will be done in two phases so that the lives of current residents are not disrupted and they do not have to move.
Linc-Cymru will also take over the day-to-day running of Penylan House.
Philip Stewart, a trustee and board member of Penylan House, said the move was a practical one. "Linc-Cymru has an excellent reputation in the field of care. We are confident that the partnership we have with them will secure the provision of the highest standard of care possible for our current and future residents in modern facilities for many years to come."
The chief executive of Linc-Cymru, Robert Smith, added that he was delighted to work with Penylan House.