The blaze in Vellinge began at around 10pm and was visible from a distance of several kilometres.
Fire fighters worked hard to limit the blaze to the affected area.
“The damage is total. It was an old building and the fire spread very quickly,” said police spokesman Hans Nilsson.
Police have begun a preliminary investigation into arson.
“We don’t know yet whether the fire was started by somebody but it does look that way since there was a fire in a construction container in the area an hour earlier,” said Nilsson.