Inaugural Lecture:“The Extraordinary Challenges of Future Healthcare and the Estates

Implications for the NHS”

Professor Sir Malcolm Grant CBEChairman NHS England

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25th March 2014

Given at:The Royal Institution of Great Britain

Organised by the

W H I T E H A L LL E C T U R E S

T H E F A R A D A Y T H E A T R E

Named after Michael Faraday FRS (1791–1867) the world famous chemist and physicist. In 1831, Faraday discovered electromagnetic induction, the principle behind the electric transformer and generator. During his first year as Director of the Laboratory at the Royal Institution, he initiated the first Christmas Lecture series at a time when organised education for young people was scarce. Between 1827 and 1860, Faraday gave the Christmas lectures a record nineteen times. The Royal Institution Christmas Lectures have been held in London each year since 1825.

T H E R O Y A L I N S T I T U T I O N

Patron Her Majesty The Queen Vice Patron HRH The Prince of Wales President HRH The Duke of Kent Chairman of Trustees Sir Richard Sykes

For more than two hundred years the Royal Institution of Great Britain has been at the centre of scientific research and the popularisation of science in this country. Within its walls some of the major scientific discoveries of the last two centuries have been made. Chemists and physicists – such as Humphry Davy, Michael Faraday, John Tyndall, James Dewar, Lord Rayleigh, William Henry Bragg, Henry Dale, Eric Rideal, William Lawrence Bragg and George Porter – carried out much of their major research here. The technological applications of some of this research has transformed the way we live. Furthermore, most of these scientists were first rate communicators who were able to inspire their audiences with an appreciation of science.

The Royal Institution today is a modern organisation committed to “diffusing science for the common purposes of life”.

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C O N T E N T S

OVERVIEW

The Faraday Theatre........................................................... 1The Royal Institution.......................................................... 2Contents.............................................................................. 3Whitehall Lecture Series.................................................... 4Message - Professor Sir Leszek Borysiewicz.................... 5Cambridge University Land Society ................................. 6Department of Land Economy........................................... 7The Whitehall Lecturer - Professor Sir Malcom Grant..... 8

CONTRIBUTORS

Whitehall Lecture, Chairman............................................ 9Sponsors............................................................................ 10Fulcrum Group.................................................................. 11Simons Group................................................................... 12Interserve.......................................................................... 13Bevan Brittan.................................................................... 14DTZ.................................................................................. 15CULS President - Roddy Houston................................... 16 CLEAB Chairman - Jon Zehner....................................... 17CULS Committee Members............................................. 18Cambridge Land Economy Advisory Board Members.. 19-20Media Sponsor.................................................................. 21

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T H E W H I T E H A L L L E C T U R E S E R I E S

The Cambridge University Land Society is launching this important series of lectures in recognition of the part the Department of Land Economy plays in contributing to public policy issues. Society members are mainly alumni of the Department, but also from many other academic disciplines in the University of Cambridge. Many play important and often distinguished roles in many aspects of public policy that are covered by the work of the Department.

The Department of Land Economy is a leading international centre teaching in a strong research-oriented environment. It applies particularly the disciplines of economics, law and planning for the analysis of the governance of land use, urban areas and interactions with other environmental resources. It seeks to address contemporary problems as well as more fundamental analysis. This includes both the role of governments in establishing regulatory frameworks within which land and related markets operate and the role of private organisations in owning, managing and developing physical and financial assets within those markets. This combination gives the Department of Land Economy a unique and valuable perspective of critical public and private issues.

This series of lectures seeks to discuss major aspects of public policy that in one way or another touch on these disciplines. The lectures provide a valuable public discussion forum based on papers given by eminent speakers and experts in their fields.

It is intended that the lectures are published as occasional papers.

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W E L C O M E F R O M T H E V I C E C H A N C E L L E R O F T H E C A M B R I D G E U N I V E R S I T Y L A N D S O C I E T Y

The Cambridge University Land Society is an exemplary society at Cambridge – for its longevity and for its level of engagement with a wide range of sectors and contemporary issues.

Over the last 50 years, the Society has built a membership base of nearly 1,000 alumni, spanning those who graduated from Cambridge in the 1950s who now hold senior positions in their fields, to current students and recent graduates of the Department of Land Economy.

The number of disciplines and interests represented in the Society’s membership – as well as the broad range of issues discussed at business and social events held by the Society each year – highlight what Cambridge does so well. We recognise that the challenges we face today are increasingly complex, multi-faceted and global in nature, and that they cannot be overcome with the expertise of just one area. This is why it is so valuable that the Land Society continues to bring together fresh and diverse perspectives from those studying and working in economics, land, planning, governance, finance, environmental resources and beyond on critical public and private issues.

The Whitehall Lecture series represents a great opportunity to take this debate forward – and to build the Land Society’s critical mass of expertise – and I wish it every success.

Professor Sir Leszek Borysiewicz, Vice-Chancellor, University of Cambridge.

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C A M B R I D G E U N I V E R S I T Y L A N D S O C I E T Y

The Cambridge University Land Society (CULS) is the largest and oldest departmental alumni Society in the University of Cambridge with over 1,000 members and is the Alumni Society of the Department of Land Economy within the University. The Society arranges over 25 events a year, mainly Business Breakfasts in London, Lectures, Conferences, Seminars and site visits to some of the most important developments in the UK. Its events have attracted over 13,000 registrations in the last 10 years.

CULS members work in Real Estate, Investment Banking, Climate Change and Sustainability, Planning, Regional and European Economic Research organisations. It has a strong membership across mainland Europe and in Asia as well as in the United Kingdom.

Amongst the Society’s membership are the Heads of many Real Estate Investment Banks, Public Property Companies, Property Investment Funds and Professional Firms and Institutions. The University is No1 in the UK and Europe; 5th in the World rankings and the Department of Land Economy is the 1st ranked in Europe and 1st in its category in the Sunday Times and Guardian 2013 assessments.

The Society runs a number of important regular events including the Alistair Ross Goobey and Whitehall Lecture series and the Cambridge Policy Group through leadership dinners and lunches.

CULS provides strong student support organising careers events, a strong Mentoring programme for Graduates and Undergraduate students and funds academic and support posts within the Department of Land Economy.

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T H E D E P A R T M E N T O F L A N D E C O N O M Y

The Department of Land Economy celebrated its 50th anniversary in 2012. Established following a generous bequest by Lord Samuel of Wych Cross and the Department now has over 320 students on taught programmes, around 65 PhD students, 19 Academic staff and some 30 Research staff.

This is a considerable growth in student numbers that fourteen years ago stood at around 100 on taught programmes and reflects the growing interest in development, the environment and property.

The 2008 Research Assessment Exercise (RAE) ranked the Department of Land Economy first in the UK with a score higher than the University of Cambridge average. The Department is ranked first in the Guardian, Independent and Times 2013 undergraduate subject league tables that measure research, teaching quality, student experience, career prospects and staff student ratios.

In recent years the Department has added to the undergraduate Tripos in Land Economy with a suite of one year, intensive postgraduate programmes. Admission to these MPhils in Real Estate Finance, Environmental Policy and Planning Growth and Regeneration is highly competitive. The MPhils have an international flavour with over half of students coming from outside the EU.

The focus of the Department’s research and teaching around economics, law, finance and planning in land, property and environment ideally places it to engage in and contribute to the challenges of sustainable development. Its leading edge research on the economics of climate change is contributing to how society mitigates against human induced climate change. In real estate, planning and development there are significant challenges about how society creates more sustainable forms of development that balance economic, social and environmental concerns. Land Economy will increasingly engage with these issues.

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UNIVERSITY OF CAMBRIDGE

Founded in 1209, the University of Cambridge is not only one of the world’s oldest institutions but also a global leader, consistently ranked in the top five universities internationally. Cambridge is a self-governing community of scholars, bringing together 31 Colleges and over 150 departments, faculties, schools and other institutions.

Cambridge’s reputation for outstanding academic achievement reaches around the globe and reflects the intellectual prowess of its students, as well as the world-class original research carried out within the University and Colleges. It is also rich in history – its famous College and University buildings attract visitors from all over the world.

Many of Cambridge’s customs and unusual terminology can be traced to roots in the early years of its long history, which looks to the past to find the origins of much that is distinctive in the University today. It is justly famous for its heritage of scholarship, historic role and magnificent architecture, which underpin one of the world’s most important centres for teaching and research. The collegiate structure gives a strong sense of community, which fosters the University’s determination to remain at the forefront of international scholarship and research.

The University of Cambridge is now in the middle of the greatest physical expansion in its history. With the generous support of benefactors, the University has been able to create a new science and technology campus to the west of the city centre, and is now looking to expand further to the north west of Cambridge. The arts and humanities have seen dynamic changes in their Sidgwick Site location and expansion in the city centre.

Sustaining a world-class university demands investment in new facilities, new areas of study, and most importantly, in people; continued fundraising efforts and innovative partnerships will be vital. The University celebrated its 800th anniversary in 2009, marking the legacy of eight centuries and committed to remain among the world’s greatest universities.

T H E W H I T E H A L L L E C T U R E RP R O F E S S O R S I R M A L C O L M G R A N T C B E

Professor Sir Malcolm Grant was the Professor of Land Economy at Cambridge from 1991-2003, and is a Life Fellow of Clare College. He became Pro-Vice Chancellor of Cambridge from 2002-2003. In 2003 he took up appointment as President and Provost of UCL (University College London) and recently completed a 10 year term of office. He was appointed CBE in 2003 for services to planning law and local government and was knighted in 2013 for services to higher education.

He is now Chairman of NHS England, the independent body charged with holding and investing the NHS budget strategically so as to secure significant long-term improvements in healthcare and health outcomes for the population of England. Sir Malcolm has served as Chair of the Local Government Commission for England, of the Agriculture and Environmental Biotechnology Commission and the Russell Group. He is currently a board member of the Higher Education Funding Council for England and of the University Grants Committee of Hong Kong; and he serves as a UK Business Ambassador.

He is a barrister, a Bencher of Middle Temple, and an Honorary Member of both the Royal Institution of Chartered Surveyors and the Royal Town Planning Institute. He is the author of several books, including Urban Planning Law, and he was for 25 years the Editor of the Encyclopedia of Planning Law and Practice.

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W H I T E H A L L L E C T U R E S E R I E S , C H A I R M A N

Douglas Blausten, President’s Council, Cambridge University Land Society.

Douglas is Senior Partner of Cyril Leonard, Chartered Surveyors, where he is responsible for Corporate Strategic Real Estate Consultancy Services, as well as for their offices in Munich and affiliate office in Paris. He is Vice Chairman of NHS Property Services Ltd and Chairman of its Audit and Investment Committee a Centre Fellow of the Cambridge Centre for Climate Change Mitigation Research and a member of the Cambridge Land Economy Advisory Board for which he chairs its Development Committee. He has held a number of executive and non-executive directorships in public and private companies.

He was a General Commissioner of Taxes until 2009 and is the Chairman and Trustee of a number of Charitable Trusts and Funds, including the Mental Health Foundation, Past President of the Cambridge University Land Society (2004/05) and a member of the Presidents’ Council. Until the office of Commissioner was abolished by the Ministry of Justice, he was a General Commissioner of Income Taxes for over 12 years until 2009.

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S P O N S O R S

Cambridge University Land Society gratefully acknowledges the following sponsors:

PLATINUM SPONSORS GOLD SPONSORS

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P L A T I N U M S P O N S O R

F U L C R U M G R O U P

Fulcrum Group is a leading private sector partner in the primary/community healthcare fields and an active partner in a number of Public Private Partnerships, including:• Renova Developments – NHS LIFT company for Halton, St Helens, Knowsley & Warrington• South London Health Partnership – NHS LIFT company for Wandsworth, Richmond, Kingston, Sutton, Merton, Croydon, Lambeth, Southwark and Lewisham• West London Health Partnership – NHS LIFT company for Ealing, Hounslow, Hammersmith and Fulham• Bristol Infracare – NHS LIFT company in Bristol• Oxford Infracare – NHS LIFT company in Oxford• Hub South East Scotland – covering the Lothians and BordersWe provide three key services to our public sector partners:• Strategic Asset Management – estates planning, optimisation and delivery of efficiency savings• Development Management – investment in new development and management of the entire development process through to handover• Estates Management – proactive operational management of both LIFT and Non-LIFT assetsMost recently we have worked closely with our public sector partners to establish the Merseyside Property Partnership (MPP), a collaboration between NHS Property Services, Community Health Partnerships, Renova Developments and Liverpool & Sefton Health Partnerships. MPP is a new and innovative approach to the optimisation and management of the NHS estate across Merseyside combining the best of public and private sector skills.Fulcrum Group’s mission is to help our public sector partners optimise value and performance of their estate through strong local partnerships and we are committed to improved delivery of public services for local communities.

For further information:Contact Richard Ashcroft

www.fulcrumgroup.co.uk

T: 020 3006 4700 E: rashcroft@fulcrumgroup.co.uk

P L A T I N U M S P O N S O R

S I M O N S G R O U P

Answering the needs of the modern NHS through Property Solutions.Simons Developments • From option appraisals, rationalisation strategies, development management, disposal and delivery we have the expertise to improve the value of a property portfolio. • Supported by funding partners and partnering investors, and with strong relationships with those with property needs, we have the knowledge and contacts to assist.Simons Design • An established history in providing our clients with feasibility or concept, outline or detailed design through to full construction issue drawings. • Experienced in managing and co-ordinating other design consultants and representing our customer as lead consultant, with Pharmaceutical and clean room as a particular speciality.• We add real value to our Development and Construction businesses, providing architectural support and knowledge.Simons Construction have a 70 year history of delivering for our customers. • Delivering our customer’s needs across Health, Retail and Industrial & Distribution. • A dedicated Health team, with a proven track record of partnering with clients, designers, and project stakeholders. • Delivering projects of varying nature, size, complexity and sensitivity. • Creating new build, refurbishment, reconfiguration, infrastructure, design and construction solutions for Primary, Secondary and Private health care providers in the UK.Whichever part of Simons Group you work with, you will feel the benefit of the whole of our business.Unlocking hidden value through Property Solutions

D E V E L O P M E N T

D E S I G N

C O N S T R U C T I O N

For further information:Contact Paul Hodgkinson

www.simonsgroup.com

T: 0808 202 3991 E: paul_hodgkinson@simonsgroup.com

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P L A T I N U M S P O N S O R

I N T E R S E R V E

For further information:Contact Patrick Carter

www.interserve.com

T: 020 7902 2000 E: patrick.carter@interserve.com

Interserve is one of the world’s foremost support services and construction companies, operating in the public and private sectors in the UK and internationally. We offer advice, design, construction, equipment and facilities management services for society’s infrastructure. We are based in the UK and listed in the London Stock Exchange’s FTSE 250 index.

G O L D S P O N S O R

B E V A N B R I T T A N

Bevan Brittan is a national law firm focused on delivering legal solutions to the public services market. We define public services as those which are delivered by organisations in the public, private and third sectors which commission, provide, procure, fund and regulate public services. Highlights of our work include representing the Local Government Association in the successful recovery of £1.05 billion from the collapsed Icelandic banks.We act for more organisations in the public sector than any other law firm and we are one of the largest suppliers of legal services to the Health market where we act for NHS trusts and independent / private providers. Our experience and advice spans the widest range of transactions from straightforward leases and disposals to the most complex deals including regeneration projects and joint ventures with values into the many hundreds of millions of pounds and frequently of national importance. A recent example includes acting on one of the largest property transactions in many years – completing the due diligence process in relation to the transfer of 4500 health facilities from 161 Primary Care Trusts to NHS Property Services Limited and NHS Providers in April 2013. We are also the authors of the national guidance for estate professionals working in the NHS.Our wider experience includes clients in Central Government Departments and Agencies, Registered Providers and Local Government where we currently act for nearly every Council in England and Wales. We also act for some of the largest Private Health Providers and Outsourcing Organisations in Europe.Bevan Brittan has a strong reputation for innovative legal solutions. In the challenging health estates landscape this has recently included the development of the Strategic Estates Partnership, a joint venture partnership between an NHS Trust/FT and a partner (commonly a private sector partner) established to assist the Trust with developing and implementing its estate strategy.

For further information:Contact Rob Harrison

www.bevanbrittan.com

T: 0870 1941000 E: rob.harrison@bevanbrittan.com

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G O L D S P O N S O R

D T Z

DTZ is a global leader in property services. We provide occupiers and investors around the world with industry leading, end-to-end property solutions comprised of leasing agency and brokerage, integrated property and facilities management, capital markets, investment and asset management, valuation, building consultancy and project management. In addition, our award winning research and consulting services provides our clients with global and local market knowledge, forecasting and trend analysis to make the best long-term decisions for their continuous success far into the future. DTZ has 47,000 employees including sub-contractors, operating across 208 offices in 52 countries.

For further information:Contact Sally Saadeh

www.dtz.com

T: 020 3296 3000 E: sally.saadeh@dtz.com

C A M B R I D G E U N I V E R S I T Y L A N D S O C I E T YP R E S I D E N T 2 0 1 2 / 1 4 : R O D D Y H O U S T O N

Roddy Houston is a Director in Telereal Trillium’s Asset Management team, where he looks after the DVLA account under a 20-year outsourcing contract. Roddy leads a team which creates and develops the Agency’s estate strategy, and then ensures it is delivered. He is the President of the Cambridge University Land Society, where he also chairs the Commercial Property Forum and serves on the Cambridge Land Economy Advisory Board. Roddy joined Land Securities Trillium (as it was then) in 2003 to lead the Asset Management team working on the BBC contract, having previously been a management consultant in KPMG’s Projects & Real Estate consulting group. He joined KPMG in 1998 after 6 years with Coopers & Lybrand, where he was a manager in the firm’s Business Recovery & Insolvency division’s property team. Roddy trained initially with Knight Frank & Rutley (as Knight Frank was then) after serving as a platoon commander with the Royal Green Jackets. He read Economics at Cambridge.

Honorary Vice Presidents: Stuart Corbyn FRICS Ian Henderson CBE Sir Paul Judge Jeremy Newsum Sir John Stuttard Liz Peace CBE Peter Pereira-Gray

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C A M B R I D G E L A N D E C O N O M Y A D V I S O R Y B O A R DC H A I R M A N : J O N Z E H N E R

Jon Zehner is LaSalle’s Global Head of the Client Capital Group, based in London. Jon joined LaSalle in March 2012 and is responsible for leading LaSalle’s activities worldwide relating to client relations, marketing and communications, capital raising, new product development, and large scale, cross-border strategic investments. Jon is a member of LaSalle’s Global Management Committee.

Jon joined LaSalle from AREA Property Partners where he was a Senior Director. Prior to joining AREA in 2009, Jon enjoyed a 28 year career at JPMorgan Chase & Co, where he held a number of senior positions including Global Head of Real Estate Investment Banking and Head of sub-Saharan Africa. Jon is an active leader in a number of industry organisations including serving as Chair of the Cambridge Land Economy Advisory Board of the University of Cambridge and as a Trustee and member of the Board of Directors of the Urban Land Institute. Past industry activities include co-founding and serving on the Executive Board of the European Public Real Estate Association (EPRA). Jon is also a member of the Board of Visitors of the John Sloan Dickey Center for International Understanding of Dartmouth College.

Jon holds an A.B. in Economics from Dartmouth College and an M.B.A. from the Harvard Graduate School of Business Administration. He is a dual citizen of the United Kingdom and the United States.

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C U L S C O M M I T T E E M E M B E R S

For more information visit: www.culandsoc.com

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John Symes-Thompson CBRE Senior Vice President

Roddy Houston Telereal Trillium President

Aubrey Adams RBS Vice President

Peter Bennett City of London Vice President

Lauren Fendick Taylor Wessing Honorary Secretary

Werner Baumker Grosvenor Honorary Press Secretary

Louise Sherwin Deloitte LLP Honorary Careers Officer

Dominic Reilly Jones Lang LaSalle Honorary Treasurer

Paul Clark Capita Symons Honorary Members Officer

Professor Philip Allmendinger Cambridge University Committee Member

Olga Dixon-Brown RBS Committee Member

Colm Lauder IPD Committee Member

Francesca Leverkus Topland Committee Member

Noel Manns Europa Capital Committee Member

Rod McAllister Architect Committee Member

Omega Poole Brown Rudnick LLP Committee Member

Brian Waters Architect Committee Member

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C A M B R I D G E L A N D E C O N O M Y A D V I S O R Y B O A R D M E M B E R S

Anne Kavanagh, Global Head of Property Services, AXA Real Estate Investment Management

Ian Laming, Chief Operating Officer, Tristan Capital Partners

Professor Colin Lizieri, Grosvenor Professor of Real Estate, Department of Land Economy University of Cambridge

Noel Manns, Founder and Principal, Northern Europe, Europa Capital Partners Ltd

Tom Meijer, Chairman, Meyer Bergman

Marc Mogull, Founder and Managing Partner, Benson Elliot Capital Management

Chris Morrish, Managing Director, Regional Head, Europe, GIC RE Pte Ltd

Rupert Nabarro OBE, Executive Chairman, Investment Property Databank

Roger Orf, Head of Europe, Apollo Global Real Estate Investors

Gerald Parkes, Chief Executive, Pacific Real Estate Capital Partners

James Pavey, Partner, Thomas Eggar LLP

Robert Peto MA FRICS, Chairman, DTZ Investment Management

Lee Polisano, Director, Seven Dials Fund Management

Mark Preston, Chief Executive, Grosvenor

Jonathan Rose, Architect and European Masterplanning Practice Leader, AECOM

Tim Sketchley, Managing Director, Old Park Lane Management

Michael Spies, Senior Managing Director, Tishman Speyer Properties

Charles Staveley, Partner, Mills & Reeve LLP

Christophe Tanghe, Chief Executive Officer, ING Real Estate

Ian Womack, Chief Executive, Real Estate Aviva Investors

Hideto Yamada, Managing Director, Mitsui Fudosan UK Ltd

Jon Zehner, Global Head of Capital Markets, LaSalle Investment Management

Aubrey Adams, Head of Real Estate, Global Restructuring Group, Royal Bank of Scotland

Philip Allmendinger, Professor and Head of the Department of Land Economy, University of Cambridge

Chris Bartram, Chairman, Orchard Street Investment Management LLP

Julian Barwick, Executive Director, Development Securities plc

C A M B R I D G E L A N D E C O N O M Y A D V I S O R Y B O A R D M E M B E R S C O N T .

Andrew Baum, Honorary Professor of Real Estate Investment, University of Cambridge

Douglas Blausten, Senior Partner, Cyril Leonard

Léon Bressler, Partner, Perella Weinberg Partners

Jenny Buck, Head of Property, Tesco Pension Investment Limited

Hugh Bullock, Senior Partner, Gerald Eve LLP

Richard Clare, Corporate Senior Vice President, ARCADIS

Simon Clark, Head of European Real Estate, Linklaters

Ian Coull, Chairman, Galliford Try

Andrew Cunningham, Chief Executive, Grainger plc

Giles Dobson, Partner, Head of Cambridge Land & Business, Bidwells

James Garman, Managing Director, Goldman Sachs & Co

Helen Gordon, Global head of Real Estate Asset Management, The Royal Bank of Scotland

Andrew Gould, UK Chief Executive, Jones Land LaSalle Ltd

Chris Grigg, Chief Executive, The British Land Company

Ian Hawksworth, Chief Executive, Capital and Counties Properties plc

Ian Hodge, Professor in Rural Economy, Department of Land Economy, University of Cambridge

Roddy Houston, Asset Management Director, Telereal Trillium; President of Cambridge University Land Society (CULS)

Amanda Howard, Partner, Nabarro LLP

Alex Jeffrey, Chief Executive, PRUPIM

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M E D I A S P O N S O RE S T A T E S G A Z E T T E

N O T E S

Building a legacy

Estates Gazette has been at the heart of the commercial property industry for more than 150 years. EGi offers comprehensive breaking news and data service with information on hundreds of thousands of properties across the UK. Propertylink is the UK’s largest free-access commercial property availability site. The weekly Estates Gazette magazine continues to lead the market with independent and authoritative news and analysis. Alongside print is a suite of digital and online products as well as a packed calendar of events and awards. Meanwhile our online and face-to-face events ensure the UK property industry is kept up to speed with developments in a fast-changing market.

Find out more at

www.estatesgazette.com

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W H I T E H A L LL E C T U R E S

Organised by the