The closed Isolation Hospital in Mtarfa has been earmarked for a home for the elderly to be run by the private sector.
The government-owned property is one of four that form part of a project aimed at getting the private sector to restore the dilapidated buildings and put them to good use.
The other properties are a site in Mosta known as Tal-Busbesija, which served as anti-aircraft battery to protect Ta’ Qali airfield in World War II, Marfa Palace in Marfa and Strickland House on the outskirts of Mġarr, which is also known as Charlie’s Castle.
Planning Parliamentary Secretary Michael Falzon said 23 expressions of interest were received after the government announced the project in October 2013.
Seven proposals were submitted for the Busbesija site and Strickland House, six for the Marfa Palace and three for the Isolation Hospital. Ten proposals were then submitted in July and evaluated by an adjudicating committee, which issued their recommendations.
The former hospital will be given to Malta Health Care Caterers to be restored and converted into a home for the elderly. The Marfa Palace will be given to Exclusivity Malta to be turned into a boutique hotel while Strickland House will be run by Frott Artna Agritourism Consortium to be used for agritourism.
The Busbesija site will be granted to U Group Malta for the creation of a shooting range.
Dr Falzon said the authorities would start discussions with the four entities to reach an agreement to lease the properties for 45 years.
The Marfa Palace was originally built as a coastal battery in Wied Musa in 1716.
Through the years, several modifications were made to the building, which served as a hotel in the first half of last century.
Until recently, the palace was used as a summer residence by the St Joseph Home of Santa Venera. Unfortunately, it has been vandalised by squatters. The Isolation Hospital was built by the British Services in 1924 as part of the nearby hospital and barracks. Around 15 years ago, parts of the building suffered considerable damage when it was set on fire.
The structure was scheduled as a Grade 2 national monument in 2008.