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The entire first phase of this landmark development has been let. The Victorian buildings, used for decades by The Lion Match Company as its factory, are being upgraded and have been taken on a long lease by TeleTech of America - the global, NASDAQ listed, Business Outsourcing Centre.

The historic buildings occupy a total of 11 000m2. Various modern structures along Lower Main Road are currently being demolished to expose the long, gabled façades. Restoration of these imposing buildings will provide a huge environmental and visual underpinning to the ongoing upgrading process taking place in greater Observatory.

Another boost from the deal comes in the form of job creation, as TeleTech will employ around 2 500 people. 

The massive upgrade is now underway to bring the 19th century building up to 21st century, high tech standards.  To match TeleTech’s philosophy of making their staff ‘feel at home’, there will be a staff restaurant, internet café, games room and even some sleep - over facilities.

The Old Match Factory development - situated between Lower Main Road, St Michael’s and Nelson Roads in Observatory - is valued at R250 million and was the brainchild of and a joint venture between Equity Estates and Land Equity Investments Limited. Equity Estates Cape MD, Mike Deacon explains that the original plans have been adapted to suit the overall needs of Observatory.  “Originally, we considered developing a large retail component. However, this would have created higher volumes of vehicular traffic. So we cut this down drastically to incorporate just a small convenience store. Also, we did not want to repeat the mistake made in Claremont and Wynberg where the amount of retail space that was created far exceeded natural demand. This, in turn, lead to a general and severe downgrading of the excess.”

Phase 2 of the development is scheduled to begin at the end of 2008.  This will involve the building of a new structure on the north of the site to provide parking, more offices, perhaps a small amount of retail or showroom and, if market conditions permit, a residential section.

“We wanted to add something that complements the way Obs is naturally developing”, adds Deacon; “A place with a sense of neighbourhood, where modern architecture and Victoriana sit well together.  The Old Match Factory respects the past, salutes the future and will do a lot for Observatory too.”