The Lapwing Court scheme will create 54 two-bedroom apartments for over-55's on land to the north of Matley Primary School.
Development work is underway on the project, designed by PRP Architects, which is set for completion in January 2017.
The project will enable residents to live independently but with the reassurance that 24-hour care and support is available from a specialist care team based on site should they need it.
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Along with individual apartments, the three-storey building includes a communal lounge and restaurant, shared landscaped gardens and car parking.
There will also be a new vehicle and pedestrian access off Matley.
The development is set to achieve a BREEAM 'Very Good' status for environmental performance and will incorporate green technology including photovoltaic panels.
Lovell Regional Director, Simon Medler, said: "We’re delighted to be working on our first new-build project for Cross Keys Homes.
"Our team brings a wealth of expertise in the delivery of new-build extra care accommodation and we are thrilled to be bringing our knowledge and skills to a project which will create smart, modern and well-equipped homes for older people in Peterborough at a location within easy reach of local facilities and services."
Chief Executive of Cross Keys Homes, Claire Higgins, said: "We are really looking forward to working with Lovell on this development which will benefit not only the residents, but the community as a whole."
(LM)
