A childcare facility located in the prestigious suburb of Kew East has been purchased by a local Chinese investor, representing the sharpest yield for a Victorian childcare centre in 2018.

Savills Australia’s Nick Peden, Jesse Radisich, Julian Heatherich and Benson Zhou brokered the deal for $6.5 million, saying the investment opportunity generated significant interest from local and off-shore buyers.

The transaction was managed by Charter Keck Cramer on behalf of a local private investor.

“The childcare market is continuing to thrive in this current low interest rate environment, with buyers seeing long term lease security from well credentialed tenants," Mr Peden said.

Having just opened the doors after several years of building refurbishment, Guardian Early Learning Group already have extremely strong take up of places, with a growing waiting list.

Mr Peden says the property located at 720 High Street has enjoyed a healthy capital growth, representing a flourishing child care market.

"Due to a strong demand for childcare and the valuable underlying land value, the property has enjoyed a healthy capital growth since its last traded in 2015 for $3 million," Peden said.