A 14-year-old local teenager has been arrested for allegedly setting fire to the abandoned Apollon Motel in Torrens Street Victor Harbor yesterday.

Several Metropolitan and Country Fire Service units were called to the blaze yesterday at about 4.15pm, after black smoke was seen coming from the building.

The blaze was extinguished but extensive damage was caused to the two-storey property.

Officers searched the surrounding area and located the suspect nearby.

The 14-year-old local boy was charged with arson. 

He has been bailed to appear in the Victor Harbor Youth Court on 5 October.

The Apollon Motel was closed in February this year after the the site was sold. 

It is set to become a new $30M health hub, housing the Victor Medical Centre, allied health and radiology and other specialists.

Construction is planned to start early in 2023 and be complete by the end of 2024.