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An 'old derelict' substation that sits in a prized position overlooking Tasmania's cityscape has been transformed into a beautiful and functional home with floor to ceiling windows.

The Hydro-Electric Substation, built in Launceston in 1922, was fully operational until the 1960s when it fell in disrepair and the redbrick Victorian style began to crumble.

'An old Polish man owned the property adjacent and was holding onto the substation but when he died and left it to his estate, my client negotiated a deal to buy it,' Director of S Group architects Samuel Haberle told FEMAIL.

An 'old derelict' substation that sits in a prized position overlooking Tasmania's cityscape has been transformed into a beautiful and functional home with floor to ceiling windows

The Hydro-Electric Substation, built in Launceston in 1922, was fully operational until the 1960s when it fell in disrepair and the redbrick Victorian style began to crumble

'It was an old, derelict structure but has become an iconic space in recent years because it sits right on top of a hill. So on one side you have the beautiful Cataract Gorge and on the other side you have Launceston's CBD.'

The main goal of his client, which was a couple, was to turn the existing 'shell' of the substation into a liveable and comfortable home.

'We decided to install those stunning windows because they not only give you a great view but they make sure the house doesn't overheat,' Mr Haberle said.

'It was an old, derelict structure but has become an iconic space in recent years because it sits right on top of a hill. So on one side you have the beautiful Cataract Gorge and on the other side you have Launceston's CBD,' he said

The main goal of his client, which was a couple, was to turn the existing 'shell' of the substation into a liveable and comfortable home

'It is a two-storey volume space so we put the master bedroom on a mezzanine level and have a fantastic wooden staircase that weaves itself up there.'

It took a lengthy 12 months to finish the project because there was a lot of heritage brick restoration to be done but it was worth the time and effort it took to organise.

'Internally, it was important to maintain an industrial aesthetic and expose the original features,' he said.

'It is a two-storey volume space so we put the master bedroom on a mezzanine level and have a fantastic wooden staircase that weaves itself up there,' he said

There are wooden beams scaling through a modern, stainless steel kitchen and a comfortable bed with ample storage for clothes and accessories

'Internally, it was important to maintain an industrial aesthetic and expose the original features,' he said

The bathroom has unique green tiled floors and walls, there are wooden beams scaling through a modern, stainless steel kitchen and a comfortable bed with ample storage for clothes and accessories.

'We built a new structure with the garage out the back for extra storage. It looks like a rusty shard jutting out of the hill so it plays on that junkyard feel that we started with,' he said.

S Group architects was started eight years ago by Samuel Haberle, who is based in Tasmania, and he has an office in Melbourne too. 

The bathroom has unique green tiled floors and walls with an expansive shower

S Group architects was started eight years ago by Samuel Haberle, who is based in Tasmania, and he has an office in Melbourne too