A fire has broken out at an after-school care facility in Melbourne's south-east, sending flames soaring from the roof of the building.

The fire broke out in a recreation centre which houses a day care facility, wood workshop and swimming pool, located near the Blue Hills Retirement Home on Berwick-Cranbourne Road, Cranbourne East.

The building appears to have been completely destroyed.

Although none of the retirement village's units were affected, residents have been evacuated.

The CFA says all residents and staff were evacuated safely and that the fire does not pose a threat to the community.