A fire engulfed a two-storey property in Carlton’s Lygon Street dining district around 1am this morning.

60 firefighters took an hour and ten minutes to control the blaze.

Approximately 15 people were evacuated from residences after the fire moved into a neighbouring reception centre, where it engulfed the roof and caused a northern wall to collapse.

Japanese restaurant Shinbashi Yakiniku, below the reception centre, was also damaged. The Melbourne Fire Brigade reports more than $2 million of damage has been caused to neighbouring businesses.

Police are treating the fire as suspicious.

Lygon Street has been closed to city-bound traffic, and a section of Grattan Street near the site of the fire is also closed. MFB expects the roads to reopen around midday.

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