Huge fire at The Albion, formerly Motel, in South Melbourne

UPDATE: EDDIE McGuire says he tried to contact Dane Swan about the fire ripping through the pub he part owns, as a neighbour to the pub reveals his catering business was also “destroyed”.

UPDATE: EDDIE McGuire says he tried to contact Dane Swan about the fire that was ripping through the South Melbourne pub he part-owns, as police investigate criminal links to the arson attack.

“At 9.30 the phone rings and it’s Swanny. I’d sent him a text … he was blissfully unaware about everything until about 9.30 yesterday morning, and then of course things sprung into action,” McGuire said today.

“A great man who is very disappointed this morning, like everybody else.”

Thugs wearing balaclavas torched the landmark pub about 6.30am yesterday.

Swan and his partners in the expensively refurbished ­Albion hotel — including businessman Matt Darcy, brother of media identity and ex-AFL player Luke, and retired Melbourne Storm players Robbie Kearns and Danny Williams — are said to be mystified as to why it was an arson target just 11 days ahead of its reopening.

An MFB spokesman said the damage to the pub — formerly Motel nightclub — was so severe it may have to be demolished.

He estimated the damage bill as being “in the millions”.

One business owner nearby, who did not want to be named, said fire had destroyed part of his building.

“Our catering business has been destroyed,” he said.

“Everything has melted, plus there’s smoke and water damage.”

He estimated there would be a significant clean up cost.

Businesses neighbouring The Albion were also rocked by the news.

York Street business Organisation Unlimited is located two doors down from the pub.

Managing director Kerrie O’Dea said it was sad to lose the building that formerly housed the Motel Nightclub.

“We’ve lost another Melbourne icon...we’ve already lost the Stokehouse,” she said.

“(The incident) is concerning...nothing like this has happened before and it’s a pretty friendly street.”

One of her staff spotted smoke on the way to work.

“One of the girls was on the West Gate and saw the smoke,” she said.

“We came in about midday.”

Northumberland Street businesses were told by police they could leave work early on Monday after asbestos was found in The Albion building.

Some businesses left about 4.30pm Monday and the offices were deemed safe to work in on Tuesday.

Police, MFB and crane crews were on site Tuesday afternoon to stabilise the building.

York Street was closed to cars, but still attracted plenty of foot traffic.

South Melbourne Market, which is opposite the pub, is closed on Monday and Tuesday.

Dane Swan during renovations at The Albion. Picture: Jay Town

Luke Darcy today said he was tasked with informing his brother, who runs the Darcy Group, about the fire.

Luke said yesterday’s events were an incredible shock to all involved, but he believes they will potentially rebuild the venue.

“I woke (Matt) up out of bed yesterday when that news came though,” he said on Triple M.

“I think they’ll go through insurance (and rebuild). The building is in real danger of having to be demolished, so they’ll work that out over the next couple of days.

“Hopefully it will be a brand new sparkling venue in 12 months time, but more than that, let’s hope the police can do their job accurately and find out exactly why and exactly who.”

Mark Armstrong, who runs celebrity-magnet F45 gyms in Port Melbourne and South Yarra, and well-regarded nightclub promoter Ben Vague are also part-owners.

In a Facebook post, Mr Armstrong, wrote: “Sincere thanks for all the messages and calls of support. My heart goes out to the Albion owners, staff and particularly tradies who have worked their butts off. No-one wins.”

Mr Vague wrote: “Indescribable the emotions of today! Thank you so so so much to the outpouring of love and support. I couldn’t have got through today without my beautiful family & friends ... It’s so hard to understand or come to grips with. We will be back bigger & better though.

“Heart bleeds today for Matty Darcy, Mark Armi and staff who have put so much time and effort in. This is my first ever venue and it will be even more special when we do eventually open again.”

At 6.30am, the site foreman stumbled upon the two masked arsonists in a stairwell near where they had started the fire.

He was punched in the face and the offenders fled as flames started to race through the York St building.

The foreman rushed outside and called emergency services within minutes of being ­attacked.

Detective Acting Senior-Sergeant Dave Cox said: “the male victim has woken up to find the premises ablaze.’’

Asked whether the owners had been recently threatened, Det Sen-Sgt Cox said: “there’s a number of inquiries that have been taking place via witnesses that are providing evidence.

“Specific threats or anything like that are subject to ongoing investigations. We’ll keep an open mind.”

Standover tactics were not part of initial police ­inquiries, he said.

About 80 firefighters took two and a half hours to control the blaze, which started on the first floor before quickly engulfing the historic three-storey building.

Fire crews were alerted to the blaze about 6.45am. Picture: Hamish Blair

Surrounding premises inc­luding a gas depot were evacuated and MFB crews were forced back in some areas amid fears the hotel would collapse

Police combed nearby streets for CCTV in a bid to identify the offenders.

They also packed hard drives into evidence bags.

The Albion, extensively ­refitted over several months, was due to reopen on Friday week.

Photos on The Albion’s social media page show Swan promoting the October 16 opening.

It had already built up social media buzz where it was being touted as Melbourne’s “newest and highly anticipated rooftop bar, live entertainment venue, event space”.

Swan, who on Friday will attend Collingwood’s best and fairest before the next day flying with partner Taylor Wilson to Bali for teammate Scott Pendlebury’s wedding, had told the Herald Sun of his excitement about The Albion.

“I’ve never been involved in something like this and the ­opportunity came up with the right people,’’ he said.

“It’s good for life after footy — I’m a lot closer to the end. It will be a new and exciting venue.”

The Albion was destroyed in the fire. Picture: Hamish Blair

Smoke from the fire spread across the area.

Fire crews battle the blaze. Picture: Hamish Blair

It took over three hours to bring the fire under control. Picture: Hamish Blair

The blaze engulfed all three floors. Picture: Hamish Blair

Eighty firefighters were involved in bringing the blaze under control. Picture: Hamish Blair

Renovations had been ongoing at the venue for six months. Picture: Hamish Blair

Albert Park Leisure Pty Ltd, which has Matt Darcy as a ­director, holds the business name for the hotel, which was registered in July last year.

The attack follows firebombings at other high-profile venues, including St Kilda’s beachfront restaurant Republica and Geelong mayor Darryn Lyons’ Home House nightclub.

Nearby business ­operator Katea Gidley, given a sneak preview of The Albion’s new look 11 days ago, said of the renovations: “it was really contemporary, quality fittings, gorgeous deck out the back. It’s just sad what’s happened.”

Anyone with information should contact Crime Stoppers on 1800 333 000 or visit www.crimestoppersvic.com.au