A FIRE was reported at 3:45pm on Thursday, October 24 at the intersection of Church Street and Thompson Avenue, an abandoned property opposite Coles and behind St Philips Anglican Church was up in flames.

Sergeant Chris Brinkman from Cowes Police Station is currently on the scene, blocking off access to Church Street while the Phillip Island CFA responds to the situation.

"We're treating the fire as suspicious at this stage. We are aware that a couple of individuals were squatting in the property, and they are known to us. We will be following up with them for further inquiries," Brinkman stated.

The Bass Coast Criminal Investigation Unit has been notified and will take over the investigation.

Authorities also warned the public to keep their windows closed due to the presence of asbestos in the roof of the building. While most smoke has dissipated, the precaution remains in place.