Hospital sold to help cut WA debt

The Kaleeya Hospital site in East Fremantle has been sold and will become an aged care service and health facility.

An East Fremantle hospital has been sold for $17.5 million as part of the West Australian government's asset sales program to reduce debt.

The 10,000sq/m Kaleeya Hospital site has been sold to Southern Cross Care (WA) Inc, which plans to use the land for an aged care service and health facility.

All obstetrics, gynaecology and neonatal services will be transferred to the new Fiona Stanley Hospital in Murdoch, while sub-acute services such as aged care will go to Fremantle Hospital.

Elective surgery will be distributed between both hospitals.

Premier Colin Barnett says a further 18 sites, including four hospital precincts, have been identified for sale as part of the first round of the state's land sale program, with initial sales expected to raise $250 million.

"These sites have been identified as surplus to the government's requirements and with the opening of the new Fiona Stanley Hospital, there is no need to keep the Kaleeya Hospital in government hands," he said.

Lot 500 Shaw Road in Wanneroo was also recently sold for $3.7 million.

The government is also divesting port assets and WA's primary fruit and vegetable wholesale market in a bid to net $6 billion over three years.