Principal nurse manager Lyneta Russell is delighted with the progress and says it is looking "very, very beautiful".
The Taieri Rd facility, previously part of Wakari Hospital, was bought from the Otago District Health Board in 1997.
The rooms had become outdated and the layout was also not ideal for the services that Leslie Groves now offered, Ms Russell said.
Redevelopment of the aged-care hospital residential services was under way, with 20 new rooms occupied and another 18 due for completion in late November.
All rooms were single rooms with en suite facilities and external exits. Four extra large rooms, with an adjacent lounge, were designed specifically for residents requiring palliative care.
Rooms had outlooks on to the garden and there were also about six internal courtyards.
Careful planning had meant minimal disruption, with no residents having to be moved off-site during the work.
Residents had been enjoying watching the activity, particularly the earth-moving work, Ms Russell said.
Staff had also been accommodating and were both excited and proud about the redevelopment, she said.
A new kitchen meant food could now be cooked on site, instead of being brought in, and there was also a new laundry.
Planning was already under way for subsequent stages, including redevelopment of the staff facilities and the psycho-geriatric area.
Leslie Groves, which celebrates its 60th anniversary this year, is a charitable trust governed by a board of parishioners from St John's Roslyn Anglican Church in Highgate.
Board chairman Colin McLeod said it was fortunate to have such a "brilliant" location. The elevated site provided a good outlook and it featured well-established gardens.
An official opening of the redeveloped facility was planned later in the year. With an ageing population, demand was growing quite significantly, Mr McLeod said.
The trust also has a 34-bed rest-home in Sheen St.
