A former meeting place for Stolen Generations children in Boorloo has been returned to the Sister Kate's Home Kids Aboriginal Corporation to begin the process of turning it into a Place of Healing for Stolen Generations.

In a divestment ceremony on August 25, The Indigenous Land and Sea Corporation returned the 2.07 hectares of land known as the bush block to SKHKAC.

The land sits opposite the former Sister Kate's Home for Aboriginal children, which housed children who were taken from their parents between 1934 and 1975.

During this time, the Aboriginal children were briefly able to meet with their parents in secret at the bush block.

ILSC chair Ian Hamm officially hands over the Bush Block to SKHKAC chair Glenn Pearson.

During the divestment ceremony, WA Aboriginal Affairs Minister Tony Buti announced a $3.2 million fund to establish a healing centre on the block.

Mr Buti said it had been a long journey to reach this point.

"Nothing can make up for what was taken from the children and families of the Stolen Generations but in partnering in projects like this we can aid healing and education children about the past," he said.

"I know that it's ($3.2 million) going to go towards a place of healing and truth telling and is part of that whole journey."

The bush block was originally owned by the Uniting Church and was bought by the ILSC in 2008 with the intention of returning it to SKHKAC to benefit members of the Stolen Generation in WA.

The ILSC granted SKHKAC an additional $500,000 for capital and other works.

ILSC chair and Victorian Stolen Generations survivor Ian Hamm said a healing centre would establish a place where Stolen children could feel a sense of home and belonging.

"There is one thing Stolen children share and it's different from even the rest of the Aboriginal community," he said.

"These are the only ones who understand your journey, understands your pain, who understands where you're at.

"In a room full of strangers...I feel very much at home with my sister girls here, we have a shared story.

"But let's continue to share that story and let's continue doing what we need to be done."

SKHKAC executive officer, Tjalaminu Mia conducts a bushwalk through the Bush Block

SKHKAC executive officer and past resident Tjalaminu Mia said all WA Stolen Generations would be able to use the facility.

"We're walking on that road of of healing and trauma recovery, this Bush Block means everything to us because it played a big part of our healing," she said.

"And we couldn't articulate that back in the day because we were only kids.

"But now we're adults, we're grannies, we're parents, grandparents and great-grandparents now.

"And so what we're doing is using this block for dual purpose; heal us, heal our young one's, heal the community as a collective."

The first stage of the Place of Healing project includes events infrastructure, shade structures and yarning areas, raised walkways, fencing, art and interpretation, toilets and a shed.