Jodie Brian Pike, 47, was arrested at a home on Myuna Way, Mangerton about 10.30am on Thursday and charged with damaging property by fire, as well as multiple domestic violence offences said to have occurred both the day before and the day after the suspicious blaze inside Meni Cafe.

Pike fronted court on Friday morning but did not apply for bail, with his lawyer instead raising concerns about his mental health and fitness.

Magistrate Sally McLaughlin formally refused bail and ordered that Pike be taken to Shellharbour Hospital to undergo a psychological assessment at the mental health unit.

Read more: Joel Westman's girlfriend Nikita jailed for role in Wollongong party drug syndicate

Police will allege Pike was responsible for starting the blaze that destroyed the cafe, owned by Illawarra businessman Amir Harb, sometime between 3.30 and 4.30am on Wednesday.

Emergency services were called to the scene and found the building well alight.

Fire and Rescue NSW officers worked to extinguish the blaze and a crime scene was established, with initial inquiries deeming it suspicious.

Speaking to the Mercury on Wednesday, Fire and Rescue NSW Wollongong duty commander Jeremy Hood said the blaze likely began just outside the cafe's back wall.

Read more: Berkeley woman led police on high-speed chase through school zones

"It caused structural damage to that wall and brought down the roof before it was fully contained," he said.

Insp Hood said firefighters had managed to stop the blaze from spreading to adjoining buildings, despite difficult conditions.

Strike Force Dayal was established by detectives from Wollongong to investigate the circumstances surrounding the incident and led to Pike's arrest on Thursday morning.

The Mercury understands the allegations of domestic violence against Pike, in which he is alleged to have twice contravened an AVO and assaulted a woman, are separate and unrelated to the fire charge.

We depend on subscription revenue to support our journalism. If you are able, please subscribe here. If you are already a subscriber, thank you for your support.