In general, foreign corporate investors may invest in Japanese property directly or through a Japanese local corporation including special purpose entities (e.g., kabushiki kaisha (KK), goudo kaisha (GK), tokutei mokuteki kaisha (TMK), Japan Real Estate Investment Corporations (J-REIT)).
It is common for the foreign investors to invest in Japanese real estate properties via a Japanese entity whereby the Japanese entity would hold the Japanese real estate property, if it may be in the form of trust beneficiary interest or fee simple, and the entity itself would be held by a foreign holding entity.
Source : PWC