Although the application of capital market theory is questionable in real estate investment, institutional investors are advised continuously to perform asset allocation and real estate portfolio management with CAPM-based models. Due to a lack of data in many real estate markets and other reasons these models will not be applicable. Searching decision theory application for close buy applications of multiple choice portfolio decisions the authors found an analogy in project management. Multi project management problems are very similar to real estate portfolio decisions. The authors will adopt a project portfolio management approach to solve real estate portfolio management problems. Therefore they develop a financial model where every single real estate is treated like a project. Instead of historic price information from the real estate markets this model uses the specific investment based know how of the individual investor. Risk and return information of every single real estate and the whole portfolio will be methodically generated by a simulative risk analysis. The generated output characterizes the risk and return structure of the real estate portfolio. It is compatible to the commonly used asset allocation processes in the dominating security markets. The authors demonstrate how there model can be used as a back bone in the financial performance-controlling system of an institutional real estate investment company. Different applications in real estate investment decisions, risk management and investment controlling will be shown.