Seventy-five firefighters contain major blaze in Adelaide CBD

A large out-of-control fire that developed in a building at the rear of an Adelaide hotel, causing smoke to billow across the CBD, has now been contained.

Buildings in Hindley Street were evacuated as 18 trucks and 75 firefighters battled the fire on Schrader Street, between Hindley and Currie Streets.

The Metropolitan Fire Service said the blaze started at the three-storey Wing Chun Kung Fu Academy, behind the hotel, and spread to the adjacent Polites building.

The roof of the Wing Chun Kung Fu Academy collapsed due to fire damage underneath, and the weight of water attacks from above. Walls are at risk of collapsing.

Thousands of people were evacuated from buildings in Leigh and Peel Streets due to the risk of asbestos exposure from the fire, however the EPA has since confirmed there is no asbestos risk.

Smoke is drifting in a southerly direction, with residents and officer workers advised to close windows and doors.

Ambulance officers confirmed three people were taken to hospital for treatment of smoke inhalation.

The blaze has also caused traffic chaos through the north of the city, with road closures leading to traffic gridlock and public transport diversions.

Currie Street is reopening to traffic, with the speed limit reduced to 25km/h. Pedestrians are allowed on Currie Street but not on streets north into Hindley Street.

Westbound traffic on Grenfell Street has reopened, however Hindley Street is still closed. People are advised to avoid the area where possible.

Initial reports were that the blaze began as a rubbish fire and spread into nearby buildings.