Clearbell is seeking to raise £400m (€469m) for its latest high-return UK real estate fund, according to sources.

The Arizona Public Safety Personnel Retirement System (PSPRS) has been confirmed as one of the new investors.

A board meeting document shows that the pension fund is committing £80m to Clearbell Property Partners III.

Arizona PSPRS is placing £50m directly into the fund and has committed an additional £30m for co-investment opportunities.

Clearbell, which declined to comment, has been selling assets from its existing Clearell Property Partners II fund and has begun fundraising for a new fund.

According to industry sources, the company is hoping to raise £400m.

It is targeting net returns of 16% to 18% from UK real estate investments.

Arizona PSPRS is also investing in a pan-European real estate fund, having committed €15m to Catalyst Europe Property Fund II.

Catalyst Capital told IPE Real Estate it had raised €350m for the value-added fund.

Jonathan Petit, managing partner at Catalyst, said: “This included a mixture of commitments going directly into the fund and some co-investment capital.

“Our fund is now fully invested with the portfolio being valued at just under €900m.”

This capital raised was greater than the €240m raised in 2007 for Catalyst Europe Property Fund I, in which Arizona PSPRS was also an investor.

“All of the assets in Fund I have been sold except for two properties that are now in the process of being sold,” Petit says. “These are a property in Edinburgh, Scotland and one in Warsaw, Poland.”

The new fund has invested around 90% of its capital in London, Paris and Frankfurt, with the remainder in Warsaw. It has focused on retail and office assets.

Many of the assets in Fund II will be sold over the next three years once the value-added improvements have been completed.