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The private company that will operate the Fiona Stanley Hospital has been named as the preferred tenderer for WA's new young adult prison.

British-based Serco was yesterday named as the preferred company to operate the Young Adults Facility, which is planned to operate from the same site as the Rangeview Juvenile Remand Centre.

The 80-bed prison will house male offenders aged between 18 and 24 and those being held at Rangeview will be moved to new facilities within the Banksia Hill Detention Centre.

Corrective Services Minister Terry Redman said the facility was the first of its kind in WA and would focus on helping young men turn their lives around.

Serco operates Australia's immigration detention centres and has also taken responsibility for WA's court security and custodial services.