This is my solution. Because there was no pre-condition then anything is allowed :-D

declare @T_MyTable Table(Region varchar(200), Contact varchar(200))

select case when Contact = 'Fred' and Region like 'Cape%Town' then 'CapeTown'
when Region like 'Cape%Town' then 'Cape Town'
else Region end Region,
Contact
from @T_MyTable
order by substring(Region,2,1) desc, Contact