FIRE has destroyed a $2 million mental health care centre in North Hobart and a 53-year-old man has been charged with attempted murder and arson.

The blaze broke out just after 10.30am today at the historic Peacock Centre wedged between Swan and Elphinstone streets, which has been used as a day centre for mental health clients and a base for staff visiting clients in the community over recent years.

The building was quickly evacuated by staff as Tasmanian Fire Service battled to bring the blaze under control before it spread to other historic homes in the built-up area or threatened the popular North Hobart restaurant strip.

media_camera Tasmania Police Inspector Adrian Bodnar about to speak to the media after the fire at the Peacock Centre mental health facility in North Hobart. Picture: SAM ROSEWARNE

Two THS staff were taken by Ambulance Tasmania to the Royal Hobart Hospital for treatment and others were reportedly treated at the scene after suffering the effects of smoke inhalation.

No burns were reported and no patients were inside at the time of the fire.

Tasmania Police Inspector Adrian Bodnar said no nearby residents were evacuated.

However, police quickly shut off streets surrounding the area with traffic rerouted away from Elphinstone Rd, Elizabeth St, Mortimer and Mt Stuart roads for much of the day.

Just before noon, police reported that one person remained unaccounted but was later found.

GALLERY: PEACOCK CENTRE DESTROYED BY FIRE

People in the immediate area were advised to avoid exposure to smoke by closing windows, vents and doors and turning any air-conditioning units off.

Non-residents were warned to stay away from the area.

Police took a 53-year-old man into custody around midday and charged him with arson and attempted murder late this afternoon. He will appear in court tomorrow.

Built as the home of jam factory owner Mr W. D. Peacock in the early 1900s, the brick and stucco Peacock Centre was originally called Ruardean.

media_camera Smoke rising from the Peacock Centre blaze in North Hobart. Picture: SAM ROSEWARNE

It was bequeathed as a convalescent home to the State Government in 1921.

Tasmanian Health Service Group Director of Clinical Operations Wendy Rowell said the fire had caused significant damage to the building and her team was now working to establish another site to deliver mental health services.

“We are contacting all the patients that receive this service and we are at the moment ... negotiating another area where we can actually see them in the next few days ... and also housing the staff that provide the service,” Ms Rowell said.

“I have met with Mental Health and Statewide Services and the Department of Health and Human Services to discuss potential options for our service delivery, and we will be informing our clients of interim arrangements once they have been settled.”

Hobart Fire Brigade district officer for brigade operations Stuart Males said a thorough investigation with Tasmania Police would be undertaken when it was safe to enter the building.

“They will do a thorough investigation and they will be able to determine what was used [to start the fire],” Mr Males said.

However, he said the older style of the building allowed the blaze to travel easily through the roof space and into other areas.

“The street level on Elphinstone Rd has suffered significant smoke and flame damage and also the roof structure. The rear of the building on Swan St is relatively unaffected.”

Inspector Adrian Bodnar alleged the 53-year-old man entered the centre just before 10.50am and threw some substance around the reception centre, made some comments to employees in that area and then set the substance on fire.

Insp Bodnar further alleges the man then immediately fled down Elphinstone Rd and into Elizabeth St.

media_camera Some staff members are treated by ambulance officers while others watch the fire from the safety of the footpath in Elphinstone Rd. Picture: SAM ROSEWARNE

Insp Bodnar said as a result of accounts received by witnesses, police in attendance located the male within minutes of arriving on scene.

He was taken into custody and detained at the Hobart Police Station.

Ms Rowell applauded the efforts of staff in evacuating the building.

“No-one ever wants to be in a situation like the one our dedicated staff were confronted with today. Their efforts to evacuate the building are to be commended,” she said.

“I would again like to convey the THS’ sincere thanks to staff, Tasmania Police, Tasmania Fire Service and Ambulance Tasmania for their efforts with today’s incident.

“It is an extremely unfortunate event, but one the THS is determined to move on from and ensure the provision of these valuable mental health services continues.”

Health Minister Michael Ferguson said the wellbeing of the patients and staff of the Peacock Centre was a priority

“I commend the quick actions of staff and emergency services personnel that attended the fire and worked quickly to evacuate the building,” he said.

“It is thanks to their efforts that the fire did not result in more serious injury to staff and patients.

“On behalf of the Government, I would like to convey my sincere thanks to staff, Tasmania Police, the Tasmania Fire Service and Ambulance Tasmania for their efforts with today’s incident.”

Anyone who witnessed the incident is urged to contact Crime Stoppers on 1800 333 000 (this can be done anonymously) or Hobart CIB on 6173 2603.