The closure of the home was prompted by an engineering report which said almost three-quarters of the complex was well under the minimum earthquake standard and could be dangerous in a moderate quake.
When the makeover is finished the complex would have about 60 beds in both a rest home and a hospital wing with at least 50 staff employed. It would not include a dementia wing.
Mr Tucker said the earthquake strengthening work and refurbishment should take about nine months.
"We intend to use as much local expertise as we can to get the work done," he said.
He said most of his career has been in the building industry and he did not regard the upgrade as a major one.
"A couple of auxilliary buildings will have to come down but essentially most of the original buildings will stay but simply be strengthened and modernised.
"We're currently firming up dates and timelines for the work and hope to have that sorted out very soon."
Mr Tucker and his wife, who is also a partner in the business, have been involved in the elder care industry for about 10 years, operating the Rosewood complex in Linwood which has two hospitals and a rest home wing.
"We wanted to expand our business and the Wanganui purchase is our first venture into the North Island.," he said.
The Home of Compassion would operate under a new name but that had not been decided yet.
"We've been talking with the Whanganui District Health Board about availability of elderly care contracts and the mix of facilities we'll be operating on the site," Mr Tucker said.
Tracey Schiebli, WDHB service and business planning general manager, said the introduction of additional beds in the district would take pressure off what was a fairly tight market for aged care residential beds.
Ms Schiebli said the board has had some initial discussion with the new owners.
Mayor Annette Main said she was pleased to hear that the potential of the building had been realised by an out-of-town buyer "who, from what I have been told, has been attracted not only by a property at a great price and great location but also by the opportunity that our city offers in terms of life/work balance".