The massive fire that destroyed much the former Woodlands asylum in New Westminster, B.C. may be a blessing for a company that is developing condominiums at the site.

Prior to Wednesday's fire, the Onni Group of Companies was locked in a battle with New Westminster City Hall over how much of the century-old heritage site should be preserved in its development plan.

But as authorities start to sift through the wreckage for clues about how the fire started, it now appears that only a small section of the former insane asylum will be preserved.

Wednesday's inferno, which could be seen from CTV's Chopper 9 helicopter,  is the latest in a series of fires to have damaged an abandoned building that had become a target for metal thieves and squatters.

The building is part of a former school for the mentally disabled that was closed in 1996.

With a report by CTV British Columbia's Jina You.