Around 5.40 pm police received a report that vacant premises in the Donnybrewer Road area of Derry were on fire.
Extensive damage was caused to the building.
A male youth was arrested in relation to the incident and has been released on bail pending further enquiries.
Police would ask anyone who may have witnessed this incident or who has any information to contact them at Strand Road on the new non emergency number 101.
Or, if someone would prefer to provide information without giving their details they can contact the independent charity Crimestoppers and speak to them anonymously on 0800 555 111.