TAMAR Park nursing home will close this weekend, after 13 residents were moved from the Legana facility to another in Launceston.
A statement released by owner Aged Care Services Australia Group yesterday said the facility would have needed "uneconomic" renovations if it were to stay open.
A spokesman said that of the facility's 16 residents, 13 had been moved to ACSAG's Sandhill facility in South Launceston, two had chosen to move elsewhere, and one had made an already planned move to Queensland.
Sandhill manager Helen Marshall said there had initially been anxiety among residents and their families.
"But everyone has settled in well and almost all are comfortable in their new home," Ms Marshall said.
A spokesman said that while most Tamar Park staff would also make the move to Sandhill, two full-time carers and five casual catering, cleaning and laundry staff had been offered redundancies.
Chief executive Andrew Sudholz said Japara, ACSAG's owner, aimed to grow from 3000 beds to about 4500 within the next five years.
"Japara is committed to providing aged care in Northern Tasmania and will continue to seek suitable opportunities to continue its expansion in the region, which will include a new facility to replace Tamar Park," Mr Sudholz said.