Not too familiar with hot air motors.....but I think it would be an excellent replacement block. Oil pan and front timing cover will need to be changed out......
IMHO, the SG1 is a superior strength to the original hot air.
Need to see what block you have in your car. Some later hot air blocks are 20 bolt vice the early 14 bolt, so your pan and cover may still work. The SG1 is definitely 20 bolt. I am not sure if the SG1's are like the 109's where they could or could not have the oil drain back hole in the front, which is easy to drill and tap either way. You might do some research on deck heights from your stock block to the SG1 if you plan on using the same rods and pistons. I think they were different. Here is a little bit of info from a quick search: