Inospace has acquired the historic Telkom building at 15 Lower Long Street in Cape Town’s Foreshore to expand its urban logistics and last-mile delivery network.

Built in the early 1970s on reclaimed land in the Foreshore district, the building originally served as a post office and the central Cape Town telephone exchange for South African Post and Telecommunications. The asset stood in relative isolation for many years, surrounded by parking lots and the nearby Imperial cold storage facility.

By 2004, the post office had relocated, and Telkom transformed the building into a dedicated telephone data centre. Despite the multi-million-rand investment, technology left it largely redundant.

While many Capetonians have never been inside the building and consider it an ‘ugly apartheid-era edifice’, the building is regarded as a good example of Brutalist architecture – a style known for its bold, geometric designs and use of concrete. It has sparked heated debate on social media platforms on whether it should be preserved as an historical landmark.

Some argue that its preservation is crucial to maintaining Cape Town’s architectural heritage. Brutalist buildings, with their imposing facades and practical designs, have been admired and criticised over the years, with many developers preferring modern, sleeker structures. However, a growing movement advocates for protecting these historic buildings, viewing them as essential pieces of the city’s architectural history.

“We recognise the historical significance of the Telkom building, but at the same time, we’re excited to give it a new lease on life. We aim to merge its Brutalist identity with modern functionality, converting it into a flagship logistics and data centre hub serving Cape Town’s growing demand for data, business storage and last-mile delivery,” says Inospace’s CEO, Rael Levitt.

The nine-story building, including underground parking, retail, and office spaces on the lower floors, perfectly suits Inospace’s urban logistics model. Five floors boast 6-meter-high floor plates, ideal for business storage and logistics operations. The top floor features premium office space with views of Cape Town and the V&A Waterfront.

One of the building’s most valuable assets is its immense load-bearing capacity and power infrastructure. “We plan to invest significantly in upgrading and repurposing the building to meet the city’s growing demand for urban logistics and storage solutions,” he adds. “With 13 500m2 of space, we will deliver a facility that’s not only highly competitive but also well below the rental cost of typical industrial buildings.”

The building will soon be renamed the City Exchange and offers prime visibility and access. It is opposite the Cape Town International Convention Centre (CTICC) and is bordered by four streets. Its strategic location ensures excellent connectivity to major transport routes, making it ideal for last-mile delivery operations.