Johor Sultan buys stake in Perth's historic hospital

The Sultan of Johor has acquired part of Perth's old Sunset Hospital in the suburb of Dalkeith for A$8.5 million, according to the Australian Associated Press (AAP).

The West Australian state Premier Colin Barnett has assured concerned parties the deal will not affect the heritage-listed site.

Barnett said the entire area was about 8.5 hectares, but only 1,900 square metres -- or about two per cent of the total site, was sold in the space below the heritage buildings.

AAP reported that the Premier told state Parliament on Wednesday that the money would go toward redeveloping the remainder of the site.

After landscaping is completed and the exterior of the buildings are restored, they will be offered for lease to non-profit organisations or educational institutions.

Barnett said he expected the area to be open to the public within two years. "It is basically, a 100-year-old village in pristine condition with about a dozen large constructed buildings," he is reported as telling parliament.