AN iconic Kite Street residence that was twice damaged by fire in two years will be demolished to make way for luxury apartments.
The property, which was built for doctor John Bilton and his family, was purchased by former Millthorpe resident Craig Clulow, who brokered the deal from his home in the United Arab Emirates.
Orange real estate agent Ken Barber said, after seeking two reports from structural engineers, the house would have to be demolished.
"This is very sad because it was obviously a wonderful house," he said.
The first fire, which took hold in the laundry of the house in June 2009, caused most of the damage.
It was being treated as suspicious by police and fire authorities, however, no charges were laid.
"It is a tragedy when I look at what is left of that magnificent cedar staircase, which led to the top floor, where there were beautiful ceilings and other features,” Mr Barber said.
He said his client's intention was to construct three luxury two-storey apartments on the block, however, a development application was yet to be lodged with council.
"Of course council would have preferred the exterior to stay but it just wasn’t structurally sound," Mr Barber said.
"Even though the house isn't heritage-listed, it is in an area of heritage significance and we have been told by council we need to ensure the design of the apartments is sympathetic to the area.”