Pacific Holdings, one of Japan’s largest real estate investment fund sponsors, filed for bankruptcy protection with liabilities of Y163.6bn ($1.7bn) after failing to receive a capital injection from 10 Chinese investors to help repay part of its debts.

The failure of Pacific – which sponsors both Nippon Residential and Nippon Commercial real estate investment trusts – reflects the difficulties many property groups are facing raising funds either in the capital markets or from banks.