Around 80 firefighters and police officers rushed to the scene at Hoevelhof-Staumuhle refugee facility in North Rhine-Westphalia at around 3.30pm yesterday afternoon.
Pictures posted on social media showed thick, black smoke billowing from a one-storey house after the flames quickly spread from the barracks to the building's accommodation.
The five suspected of carrying out the arson attack that injured more than 50 people are believed to have set a mattress on fire, according to a spokesperson from the Bielefeld police.
However, the exact cause of the fire remains unclear.
Police have confirmed the five arrested were migrants staying at the refugee centre.
Around 30 residents were rushed to hospital following the blaze, many suffering from smoke inhalation, while one was seriously injured.
Officers have not released any further details of their condition, but the fire brigade confirmed at least another 24 people were also treated at the scene.
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