SCENE: Police at the Sebastopol property where fire broke out overnight. PICTURE: JEREMY BANNISTER.
ONE man has been arrested after a suspicious fire destroyed a Sebastopol bungalow overnight.
CFA crews responded to reports of a unit fire in Cromwell Street at 2.28am.
They arrived to find the property's rear bungalow on fire and brought the blaze under control by 2.44am.
A CFA spokeswoman said local crews described the building as "completely destroyed", while a Ford Falcon sedan parked in front of the bungalow was also severely damaged.
The fire was stopped from spreading to neighbouring buildings, but a gum tree above the bungalow is this morning blackened and charred from the force of the flames.
Police were called due to suspicious circumstances surrounding the cause of the blaze and have a established a crime scene at the site.
A police guard is currently in place outside the property.
This morning, detectives from the Ballarat Criminal Investigation Unit have a man in custody and are interviewing him in relation to the blaze.
He is yet to be charged.