Heritage-listed building destroyed in Katherine, police issue asbestos warning

Police suspect youths may have started a fire that gutted a heritage-listed building in Katherine.

Residents were warned to stay indoors after the blaze took hold in the residence which contained asbestos.

A witness saw three youths running away from the burning building on the corner of Third and Lindsay Street about 5:00pm on Tuesday.

Sergeant Dean Barrett said the fire was suspicious.

"Definitely asbestos powders may have been dispersed as a result of the flames and the smoke and the heat generated," he said.

"We're just asking people to - if they feel uncomfortable or they don't want to be staying in their house because of the smoke - we encourage them to maybe seek some other alternative accommodation for the night.

"Obviously if they are suffering from the affects of smoke inhalation or from feeling unwell as a result of the fire we ask them to seek medical attention by going to the hospital.

"I think once the fire and the smoke dissipates from the area it won't be so bad."

He said there had been squatters living in the abandoned property for at least several weeks.

"From what I understand the property contained some storage items - it was a storage place for mattresses and linen probably belonging to a local businessman in Katherine here. It was boarded up.

"The house has gone up - it was a bit of an inferno."