Dozens of jobs will be created at a new nursing home which forms part of a £60 million state-of-the-art care village.

Work to build the home, which will boast its own cinema room, will start from this month as part of wider plans for Bournville Care Village.

Gracewell will develop the £5.3 million home, which will create 70 jobs on land on Bristol Road, formerly home to Bournville College.

Work on the home is expected to be completed by late 2015 and it will boast distinct gardens designed especially to encourage people to stay active and socialise.

One of them will be a "reminiscence garden", featuring artefacts like a bus stop and phone box, to encourage residents to recount happy memories. Another will be an activity garden, with a raised beds, greenhouse and shed, will support people to keep active.

There will also be a social garden which will include a children's play area and shaded seating area for residents and their young relatives to play and share stories and memories together.

The plans also include be a café, with internet access, lounge, dining area, hairdressing salon and physiotherapy room.

Peter Roach, chief executive of Bournville Village Trust, said this style of development was key for the fight against dementia – which more than a million people in the UK are expected to have by 2025.

He said: "It's vitally important that we have modern, specially-designed homes where older people, and people with dementia, can live comfortably and securely, but also have the opportunities to keep physically and socially active.

"This home will do just that and it's an important part of the overall Bournville Care Village which we believe will set new standards for delivering care and support in Birmingham and beyond. Significantly, it will also create jobs and boost the local economy by bringing new residents into the area."

The home, which has been designed by the trust's in-house architectural team Bournville Architects, is being built by Healthcare Development Services on behalf of Gracewell, which will provide nursing care and support to 80 people.

It will feature an eight-seat cinema room where residents will be able to watch films that spark memories from their past, an important tool in supporting older people.

Once complete, Bournville Care Village will also feature an extra care scheme with 212 apartments, developed by the ExtraCare Charitable Trust, independent living homes for people with learning disabilities and a health and well-being centre, all positioned around a central Village Green area.

The whole Village is expected to be fully completed by the summer of 2016.

Bournville Village Trust, established in 1900, is a housing association and charity which manages 8,000 homes and provides services to around 25,000 people across Birmingham and Shropshire.

Amanda Scott, managing director of Gracewell, said: "We are creating a new type of care home, one that mixes luxury interiors and surroundings with the highest levels of care focused on kindness, integrity, trust, empathy and respect.

"We look forward to welcoming the people of Bournville into our new home and helping them to care for their loved ones in their old age.

"Our vision is to create homes designed around our residents and their needs at the heart of the community. We provide truly personalised care that focuses on the tiny details of people's lives – we believe that's what creates a real sense of home."