Eversheds has just closed the first long-dated asset-backed sterling securitisation of the year in a sign that stability is returning to the bond markets.

Cornelius Medvei, Eversheds' Norwich-based property head, led the Eversheds team advising NHP – the UK's only listed property investment group – and the issuer, Cayman Island's incorporated Care Homes No 2 Limited, on the £265m fixed rate asset-backed bond issue.

"Up until now capital markets have been the province of 'magic circle' firms, but now we have shown we can provide that service," Medvei said.

Medvei's team included securities partner Adrian Possener and banking partner Andrew Croome, and was supported by London-based tax consultant Reg Nock and derivatives assistant Ruth Ward.

Securitisation of property investments, while common in the US through the real estate investment trust (REIT) vehicle, are still rare in Europe.

"It is a ground-breaking financial structure and the first serious step in the way the bond market is moving for different types of financing," Medvei said.

He added: "There is definitely an awareness that this is a way forward, but we are only at the beginning of the revolution. The great joy of working with NHP is that they are at the cutting edge."

Richard Ellert, NHP's chief executive, said property companies were divided into those that were passive, and did not do that much financial management and those that were using modern financing techniques to improve the performance of their portfolios. "We aim to have a return to investors of 20%," he added.

The structure of the securitisation was based on one put together by Eversheds and Clifford Chance for an earlier NHP securitisation – a £100m securitisation of care home leases in April 1997.

NHP has instructed Eversheds since the company's formation in 1995. Ellert said: "We receive a London quality service while not paying London prices – which helps us keep a handle on costs."