A fire next to the Hotel Grand Chancellor in Hindley St, Adelaide. Picture: Tait Schmaal. Source: News Corp Australia

At least 18 fire appliances and 70 firefighters fought the large blaze in buildings on Schrader St, a narrow lane behind Hindley St’s Grand Chancellor Hotel.

Several nearby buildings and streets were evacuated, and a smoke alert was issued for parts of the central business district.

Reports from the scene indicate at least two buildings were ablaze, including the Wing Chun Kung Fu Academy and an adjacent Polites building.

The Metropolitan Fire Service says the fire started at the three-storey Wing Chun Kung Fu Academy.

Witnesses said a man ran into a Hindley St hotel soon after the fire broke out with minor burns and cuts to his face, pleading for assistance.

The Advertiser understands the fire started in a bin, then spread to a nearby car before taking hold of the building.

The roof of the Polities building has reportedly buckled from fire damage and the pressure of water being sprayed by firefighters.

Grandmaster Leong’s Wing Chun Kung Fu owner Cheok Leong told The Advertiser he was parking his car when the blaze started.

He was not allowed through the emergency services cordon and does not know if his business of 30 years will survive.

“I think it’s gone — it’s an old building,” he said.

“I’m not even allowed to get close to there. But I believe my business is on fire. I have been working there over 30 years. In 30 years, it becomes your second home.”

Firefighters battle the blaze near Hindley St. Picture: Roy VanDerVegt. Source: News Corp Australia

The Metropolitan Fire Service believe the huge blaze in the centre of Adelaide started in a carpark.

Mr Leong said he believed the fire started in a car park below his Kung fu academy.

Firefighters hung out of windows in the Grand Chancellor Hotel to fight the blaze on several fronts.

People in buildings on Leigh St and Peel St were evacuated from the area because of the potential risk posed by burning asbestos.

A guest at the nearby Hotel Grand Chancellor, Sydneysider Molly Cooper, said she was doing her make-up when she smelled smoke and the alarms went off.

“When I came downstairs there were fireman and police officers everywhere. I smelled smoke through the whole building,” she told AAP.

“I think I was the last person to leave. I didn’t expect it to be such a huge thing until I came outside.” “There were crowds everywhere, fireman everywhere, photographers.”

The fire, which began around 12.15pm, brought the central business district to a near-standstill, with large plumes of smoke quickly becoming visible.

It has also caused significant traffic delays on the northern side of the CBD as motorists are diverted around the scene.

The fire was initially reported to be a rubbish fire in an alley behind the Grand Chancellor.

The fire caused thick plumes of acrid smoke to blanket parts of the CBD. Picture: Roy VanDerVegt Source: News Corp Australia

Smoke rises over Adelaide's CBD after a rubbish-bin fire burned out of control.

Eastbound lanes of Currie St have been opened to buses but not general traffic.

Some people have reported seeing a flash before the fire started.

Police have closed off Hindley St at King William St and Morphett St, Leigh St and Currie St.

Country Fire Service volunteers have been called in to assist the Metropolitan Fire Service crews at the scene.

People are asked to avoid the area as there are fears asbestos particles could be included in the smoke that is enveloping parts of the city.

Workers in adjoining buildings, including a major government office block on Currie St, are being sent home for the day because of the smoke.

Residents and office workers are advised to use caution and close all windows and doors. People with respiratory issues should remain indoors.

Kay Hall and her friends were in Leigh Chambers on Leigh St when the fire took hold.

She said they were the last to be evacuated from the building.

“Police came and told us to evacuate,” she said.

Another employee working on the top floor above Italian restaurant Rigoni’s said her colleague went out the fire escape and saw smoke billowing.

“We all used the stairs to leave, the alarm in our building didn’t go off.”

A Japanese restaurant owner on Leigh St said he saw firefighters jumping from the roof of the building behind his shop about 12.30pm.

“We told our customers to leave,” he said.

He was worried what might happen to his restaurant.

Many people came back from their lunch break to find Leigh, Peel and Hindley streets were cordoned off.

Police stopped anyone from entering as people trickled out from the streets.

Businesses were told they would not be allowed back in for several hours.