The 46 bed extension will take the existing home to 106 beds, ensuring local residents have appropriate care options into the future.
As well as 46 single rooms with ensuites, the new extension will include a resident and family café, alfresco, dining options, hairdressing salon, cinema, resident garden, a mini golf green, Men's Shed, children's play area and dog run for the home's resident canine.
Madeline Gall, Lifeview chief executive, says the team are excited about the extension.
"Lifeview has been very successful in terms of, not only the quality of care at Willow Wood, but also in being part of the fabric of the local Cranbourne community," Ms Gall says.
"This extension will enable us to care for the growing number of older Australians into the future," she adds.
Willow Wood is a popular local home that prides itself on the care of its residents and the award winning lifestyle programs it delivers.
"We believe this new extension will only build on the success of this home," she says.
The new extension is also expected to create a number of new jobs in the area.