PSA House in Palmerston North's King St is being transformed into UCOL's Healthcare and Social Services Centre.
Gibbons, a property investment firm from Nelson, has purchased PSA House and has started a complete interior refurbishment.
The centre will house practical courses for nursing, medical imaging, social services, and mental health education.
"It's a significant investment, which will help us better support the growing number of learners who are interested in health and social fields," UCOL chief financial officer Brian Trott says.
"This update has been part of our strategic planning for some time, and extensive planning has gone into it. We're thrilled to have Gibbons sign on and work with us to make it a reality."