sec document
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
--------------
SCHEDULE 13D
(RULE 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO
RULE 13d-2(a)
(Amendment No. 1)(1)
Real Estate Income Fund Inc.
----------------------------
(Name of Issuer)
Common Stock, par value $0.001 per share
----------------------------------------
(Title of Class of Securities)
755881109
---------
(CUSIP Number)
STEVEN WOLOSKY, ESQ.
OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY LLP
Park Avenue Tower
65 East 55th Street
New York, New York 10022
(212) 451-2300
--------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
October 21, 2005
----------------
(Date of Event Which Requires Filing of This Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition that is the subject of this Schedule 13D, and is filing
this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the
following box / /.
NOTE. Schedules filed in paper format shall include a signed original and
five copies of the schedule, including all exhibits. SEE Rule 13d-7 for other
parties to whom copies are to be sent.
(Continued on following pages)
(Page 1 of 25 Pages)
--------
(1) The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, SEE the
NOTES).
---------------------- ----------------------
CUSIP No. 755881109 13D Page 2 of 25 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
WESTERN INVESTMENT LLC
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 537,500
OWNED BY
EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
- 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
537,500
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
537,500
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 755881109 13D Page 3 of 25 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
ARTHUR D. LIPSON
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 537,500
OWNED BY
EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
- 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
537,500
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
537,500
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 755881109 13D Page 4 of 25 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
WESTERN INVESTMENT HEDGED PARTNERS L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 327,100
OWNED BY
EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
- 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
327,100
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
327,100
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.96%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 755881109 13D Page 5 of 25 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
WESTERN INVESTMENT INSTITUTIONAL PARTNERS LLC
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 184,200
OWNED BY
EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
- 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
184,200
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
184,200
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.7%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
--------------------- ---------------------
CUSIP No. 755881109 13D Page 6 of 25 Pages
--------------------- ---------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
WESTERN INVESTMENT ACTIVISM PARTNERS LLC
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 26,200
OWNED BY
EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
- 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
26,200
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
26,200
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
Less than 1%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
--------------------- ---------------------
CUSIP No. 755881109 13D Page 7 of 25 Pages
--------------------- ---------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
BENCHMARK PLUS INSTITUTIONAL PARTNERS, L.L.C.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 119,600
OWNED BY
EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
- 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
119,600
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
119,600
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.1%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
--------------------- ---------------------
CUSIP No. 755881109 13D Page 8 of 25 Pages
--------------------- ---------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
BENCHMARK PLUS MANAGEMENT, L.L.C.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 119,600
OWNED BY
EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
- 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
119,600
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
119,600
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.1%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
--------------------- ---------------------
CUSIP No. 755881109 13D Page 9 of 25 Pages
--------------------- ---------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
ROBERT FERGUSON
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 119,600
OWNED BY
EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
- 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
119,600
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
119,600
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.1%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
--------------------- ---------------------
CUSIP No. 755881109 13D Page 10 of 25 Pages
--------------------- ---------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
SCOTT FRANZBLAU
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 119,600
OWNED BY
EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
- 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
119,600
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
119,600
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.1%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
--------------------- ---------------------
CUSIP No. 755881109 13D Page 11 of 25 Pages
--------------------- ---------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
MICHAEL DUNMIRE
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 119,600
OWNED BY
EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
- 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
119,600
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
119,600
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.1%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
--------------------- ---------------------
CUSIP No. 755881109 13D Page 12 of 25 Pages
--------------------- ---------------------
The following constitutes Amendment No. 1 ("Amendment No. 1") to the
Schedule 13D filed by the undersigned. This Amendment No. 1 amends the Schedule
13D as specifically set forth.
Item 2 is hereby amended and restated to read as follows:
Item 2. Identity and Background.
-----------------------
(a) This statement is filed by Western Investment LLC, a Delaware
limited liability company ("WILLC"), Arthur D. Lipson, Western Investment Hedged
Partners L.P., a Delaware limited partnership ("WIHP"), Western Investment
Institutional Partners LLC, a Delaware limited liability company ("WIIP"),
Western Investment Activism Partners LLC, a Delaware limited liability company
("WIAP"), Benchmark Plus Institutional Partners, L.L.C., a Delaware limited
liability company ("BPIP"), Benchmark Plus Management, L.L.C., a Delaware
limited liability company ("BPM"), Scott Franzblau, Robert Ferguson and Michael
Dunmire. Each of the foregoing is referred to as a "Reporting Person" and
collectively as the "Reporting Persons." Each of WILLC, Mr. Lipson, WIHP, WIIP
and WIAP disclaim beneficial ownership of the Shares held by BPIP, BPM, Mr.
Franzblau, Mr. Ferguson and Mr. Dunmire. Each of BPIP, BPM, Mr. Franzblau, Mr.
Ferguson and Mr. Dunmire disclaim beneficial ownership of the Shares held by
WILLC, Mr. Lipson, WIHP, WIIP and WIAP.
WILLC has sole voting and investment power over WIHP's, WIIP's and
WIAP's security holdings and Mr. Lipson, in his role as the managing member of
WILLC, controls WILLC's voting and investment decisions. BPM is the managing
member of BPIP and Messrs. Franzblau, Ferguson and Dunmire in their role as
managing members of BPM, have sole voting and investment control over BPIP's
security holdings. Neither WILLC, Mr. Lipson, WIHP, WIIP nor WIAP has voting or
dispositive control over the Shares held by BPIP, BPM, Mr. Franzblau, Mr.
Ferguson and Mr. Dunmire. Neither BPIP, BPM, Mr. Franzblau, Mr. Ferguson nor Mr.
Dunmire has voting or dispositive control over the Shares held by WILLC, Mr.
Lipson, WIHP, WIIP and WIAP.
By virtue of that certain Joint Filing and Solicitation Agreement,
as amended, by and among the Reporting Persons and Karpus Management, Inc.
("Karpus"), as described in further detail in Item 6, the Reporting Persons
affirm that they are members of a "group" with Karpus for purposes of Section
13(d)(3) of the Securities Exchange Act of 1934, as amended (the "Act"). The
Reporting Persons expressly disclaim beneficial ownership of the Shares held by
Karpus.
(b) The principal business address of WILLC, Mr. Lipson, WIHP, WIIP
and WIAP is 2855 East Cottonwood Parkway, Suite 110, Salt Lake City, Utah 84121.
The principal business address of BPIP, BPM, Mr. Franzblau, Mr.
Ferguson and Mr. Dunmire is 820 A Street, Suite 700, Tacoma, WA 98402.
--------------------- ---------------------
CUSIP No. 755881109 13D Page 13 of 25 Pages
--------------------- ---------------------
(c) The principal business of WILLC is acting as the general partner
and managing member, as the case may be, of WIHP, WIIP and WIAP. The principal
occupation of Mr. Lipson is acting as managing member of WILLC. The principal
business of WIHP, WIIP and WIAP is the business of acquiring, holding and
disposing of investments in various companies.
The principal business of BPIP is the business of acquiring, holding
and disposing of investments in various companies. The principal business of BPM
is acting as the managing member of BPIP. The principal occupation of Messrs.
Franzblau, Ferguson and Dunmire is acting as managing members of BPM.
(d) No Reporting Person has, during the last five years, been
convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors).
(e) No Reporting Person has, during the last five years, been party
to a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws or finding any
violation with respect to such laws.
(f) Messrs. Lipson, Franzblau, Ferguson and Dunmire are citizens of
the United States of America.
Item 3 is hereby amended and restated to read as follows:
Item 3. Source and Amount of Funds or Other Consideration.
-------------------------------------------------
The aggregate purchase price of the 537,500 Shares beneficially
owned by WILLC is approximately $9,959,544, including brokerage commissions. The
Shares beneficially owned by WILLC were acquired with the working capital of
each of WIHP, WIIP and WIAP. The aggregate purchase price of the 119,600 Shares
beneficially owned by BPM is approximately $2,161,470, including brokerage
commissions. The Shares beneficially owned by BPM were acquired with the working
capital of BPIP.
Item 4 is hereby amended to add the following:
On October 21, 2005, Mr. Lipson sent a letter to the members of the
Board of Directors of the Issuer stating that he intends to hold each member of
the Board responsible for fulfilling their fiduciary obligations to the Issuer's
stockholders. The letter also states that if the issue of the persistent
discount to net asset value is not adequately addressed that he intends to
submit a nomination for the election of directors. The letter is filed as
Exhibit No. 3 to this Amendment No. 1 and is incorporated herein by reference.
Items 5(a)-(c) are hereby amended and restated to read as follows:
--------------------- ---------------------
CUSIP No. 755881109 13D Page 14 of 25 Pages
--------------------- ---------------------
Item 5. Interest in Securities of the Issuer.
------------------------------------
(a) The aggregate percentage of Shares reported owned by each person
named herein is based upon 11,069,242 Shares outstanding, which is the total
number of Shares outstanding as of August 22, 2005, as reported in the Issuer's
Definitive Proxy Statement filed with the Securities and Exchange Commission on
September 2, 2005.
As of the close of business on October 24, 2005, WIHP, WIIP and WIAP
beneficially owned 327,100, 184,200 and 26,200 Shares, respectively,
constituting 2.96%, 1.7% and less than 1%, respectively, of the Shares
outstanding. As the general partner or managing member, as the case may be, of
WIHP, WIIP and WIAP, WILLC may be deemed to beneficially own the 537,500 Shares
owned in the aggregate by WIHP, WIIP and WIAP, constituting approximately 4.9%
of the Shares outstanding. As the managing member of WILLC, Mr. Lipson may be
deemed to beneficially own the 537,500 Shares beneficially owned by WILLC,
constituting approximately 4.9% of the Shares outstanding.
As of the close of business on October 24, 2005, BPIP beneficially
owned 119,600 Shares, constituting 1.1% of the Shares outstanding. As the
managing member of BPIP, BPM may be deemed to beneficially own the 119,600
Shares beneficially owned by BPIP, constituting approximately 1.1% of the Shares
outstanding. As the managing members of BPM, Messrs. Franzblau, Ferguson and
Dunmire may be deemed to beneficially own the 119,600 Shares beneficially owned
by BPM, constituting approximately 1.1% of the Shares outstanding.
(b) Each of WILLC and Mr. Lipson is deemed to have sole voting and
dispositive power over the Shares reported as beneficially owned by WIHP, WIIP
and WIAP by virtue of their respective positions as described in paragraph (a).
BPM is the managing member of BPIP and Messrs. Franzblau, Ferguson
and Dunmire in their role as managing members of BPM, have sole voting and
investment control over BPIP's security holdings. Neither WILLC, Mr. Lipson,
WIHP, WIIP nor WIAP has voting or dispositive control over the Shares held by
BPIP, BPM, Mr. Franzblau, Mr. Ferguson and Mr. Dunmire. Neither BPIP, BPM, Mr.
Franzblau, Mr. Ferguson nor Mr. Dunmire has voting or dispositive control over
the Shares held by WILLC, Mr. Lipson, WIHP, WIIP and WIAP.
(c) Schedule A annexed hereto lists all transactions in the Shares
by the Reporting Persons since the filing of the initial Schedule 13D. Except
where otherwise noted, all of such transactions were effected in the open
market.
Item 6 is hereby amended to add the following:
On October 21, 2005, the Joint Filing and Solicitation Agreement
dated September 14, 2005 was amended to include BPIP, BPM, Mr. Franzblau, Mr.
Ferguson and Mr. Dunmire as parties thereto. A copy of this agreement is
attached hereto and incorporated herein by reference.
--------------------- ---------------------
CUSIP No. 755881109 13D Page 15 of 25 Pages
--------------------- ---------------------
Item 7 is hereby amended to add the following exhibits:
2. Amendment No. 1 to Joint Filing and Solicitation Agreement by
and among Western Investment LLC, Arthur D. Lipson, Western
Investment Hedged Partners L.P., Western Investment
Institutional Partners LLC, Western Investment Activism
Partners LLC, Benchmark Plus Institutional Partners, L.L.C.,
Benchmark Plus Management, L.L.C., Scott Franzblau, Robert
Ferguson and Michael Dunmire and Karpus Management, Inc.,
dated October 21, 2005.
3. Letter to the members of the Board of Directors, dated October
21, 2005.
--------------------- ---------------------
CUSIP No. 755881109 13D Page 16 of 25 Pages
--------------------- ---------------------
SIGNATURES
After reasonable inquiry and to the best of his knowledge and
belief, each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Dated: October 24, 2005 WESTERN INVESTMENT LLC
By: /s/ Arthur D. Lipson
-----------------------------------
Name: Arthur D. Lipson
Title: Sole Member
WESTERN INVESTMENT HEDGED PARTNERS L.P.
By: Western Investment LLC,
Its General Partner
By: /s/ Arthur D. Lipson
-----------------------------------
Name: Arthur D. Lipson
Title: Managing Member
WESTERN INVESTMENT INSTITUTIONAL PARTNERS
LLC
By: Western Investment LLC,
Its Managing Member
By: /s/ Arthur D. Lipson
-----------------------------------
Name: Arthur D. Lipson
Title: Managing Member
WESTERN INVESTMENT ACTIVISM PARTNERS LLC
By: Western Investment LLC,
Its Managing Member
By: /s/ Arthur D. Lipson
-----------------------------------
Name: Arthur D. Lipson
Title: Managing Member
/s/ Arthur D. Lipson
------------------------------------------
ARTHUR D. LIPSON
--------------------- ---------------------
CUSIP No. 755881109 13D Page 17 of 25 Pages
--------------------- ---------------------
BENCHMARK PLUS INSTITUTIONAL PARTNERS,
L.L.C.
By: Benchmark Plus Management, L.L.C.,
Its General Partner
By: /s/ Scott Franzblau
------------------------------------
Name: Scott Franzblau
Title: Managing Member
By: /s/ Robert Ferguson
------------------------------------
Name: Robert Ferguson
Title: Managing Member
By: /s/ Michael Dunmire
------------------------------------
Name: Michael Dunmire
Title: Managing Member
BENCHMARK PLUS MANAGEMENT, L.L.C.
By: /s/ Scott Franzblau
------------------------------------
Name: Scott Franzblau
Title: Managing Member
By: /s/ Robert Ferguson
------------------------------------
Name: Robert Ferguson
Title: Managing Member
By: /s/ Michael Dunmire
------------------------------------
Name: Michael Dunmire
Title: Managing Member
/s/ Scott Franzblau
-------------------------------------------
SCOTT FRANZBLAU
/s/ Robert Ferguson
--------------------------------------------
ROBERT FERGUSON
/s/ Michael Dunmire
-------------------------------------------
MICHAEL DUNMIRE
--------------------- ---------------------
CUSIP No. 755881109 13D Page 18 of 25 Pages
--------------------- ---------------------
SCHEDULE A
----------
Transactions in the Shares Since the Filing of the Initial Schedule 13D
-----------------------------------------------------------------------
Shares of Common Stock Price Per Date of
Purchased Share($) Purchase
--------- -------- --------
WESTERN INVESTMENT HEDGED PARTNERS L.P.
---------------------------------------
11,600 19.4222 9/15/05
9,900 19.4776 9/16/05
5,300 19.3728 9/19/05
3,900 19.3492 9/20/05
6,500 18.9228 9/22/05
WESTERN INVESTMENT INSTITUTIONAL PARTNERS LLC
---------------------------------------------
19,200 18.6757 9/23/05
WESTERN INVESTMENT ACTIVISM PARTNERS LLC
----------------------------------------
1,600 17.9588 10/18/05
BENCHMARK INSTITUTIONAL PARTNERS, L.L.C.
----------------------------------------
4,800 18.7946 9/27/05
16,000 18.7266 9/29/05
8,700 19.0131 9/30/05
2,000 19.1100 10/03/05
6,100 18.3398 10/10/05
2,700 18.1848 10/11/05
20,000 17.7974 10/12/05
22,800 17.6189 10/13/05
1,300 17.7262 10/14/05
300 17.9833 10/17/05
8,900 17.7887 10/19/05
18,400 17.7992 10/20/05
7,400 17.7695 10/21/05
200 18.0400 10/24/05
WESTERN INVESTMENT LLC
----------------------
None
--------------------- ---------------------
CUSIP No. 755881109 13D Page 19 of 25 Pages
--------------------- ---------------------
BENCHMARK PLUS MANAGEMENT, L.L.C.
---------------------------------
None
ARTHUR D. LIPSON
----------------
None
SCOTT FRANZBLAU
---------------
None
ROBERT FERGUSON
---------------
None
MICHAEL DUNMIRE
---------------
None
--------------------- ---------------------
CUSIP No. 755881109 13D Page 20 of 25 Pages
--------------------- ---------------------
EXHIBIT INDEX
Exhibit Page
-------
1. Joint Filing and Solicitation Agreement by and among --
Western Investment LLC, Arthur D. Lipson, Western
Investment Hedged Partners L.P., Western Investment
Institutional Partners LLC and Western Investment
Activism Partners LLC and Karpus Management, Inc.,
dated September 14, 2005 (previously filed).
2. Amendment No. 1 to Joint Filing and Solicitation 21 to 23
Agreement by and among Western Investment LLC, Arthur
D. Lipson, Western Investment Hedged Partners L.P.,
Western Investment Institutional Partners LLC, Western
Investment Activism Partners LLC, Benchmark Plus
Institutional Partners, L.L.C., Benchmark Plus
Management, L.L.C., Scott Franzblau, Robert Ferguson
and Michael Dunmire and Karpus Management, Inc., dated
October 21, 2005.
3. Letter to the members of the Board of Directors, 24 to 25
dated October 21, 2005.
--------------------- ---------------------
CUSIP No. 755881109 13D Page 21 of 25 Pages
--------------------- ---------------------
EXHIBIT 2
AMENDMENT NO. 1
TO
JOINT FILING AND SOLICITATION AGREEMENT
WHEREAS, certain of the undersigned are stockholders, direct or
beneficial, of Real Estate Income Fund, Inc., a Maryland corporation (the
"Company");
WHEREAS, Karpus Management, Inc. on the one hand, and Western
Investment LLC, Western Investment Hedged Partners L.P., Western Investment
Activism Partners LLC, Western Investment Institutional Partners LLC and Arthur
D. Lipson (collectively, "Western") are parties to that certain Joint Filing and
Solicitation Agreement dated September 14, 2005 (the "Agreement") for the
purpose of voting against and soliciting proxies against proposals to approve a
new management agreement and subadvisory agreement for the Company to be
submitted to a vote of the shareholders at a special meeting of shareholders
scheduled to be held on October 21, 2005 and any adjournments, postponements,
reschedulings or continuations thereof and taking all other action necessary to
achieve the foregoing.
WHEREAS, Benchmark Plus Institutional Partners, L.L.C., Benchmark
Plus Management, L.L.C., Scott Franzblau, Robert Ferguson and Michael Dunmire
have agreed to be parties to the Agreement.
NOW, IT IS AGREED, this 21st day of October 2005 by the parties
hereto:
1. Each of Benchmark Plus Institutional Partners, L.L.C., Benchmark
Plus Management, L.L.C., Scott Franzblau, Robert Ferguson and Michael Dunmire is
hereby made a party to the Agreement, and agrees to file a statement on Schedule
13D with Western (as defined in the Agreement) with respect to the securities of
the Company owned by them.
2. Except as modified above, the terms and conditions of the
Agreement are hereby confirmed and shall remain in full force and effect.
--------------------- ---------------------
CUSIP No. 755881109 13D Page 22 of 25 Pages
--------------------- ---------------------
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed as of the day and year first above written.
KARPUS MANAGEMENT, INC.
By: /s/ Sharon L. Thornton
------------------------------
Name: Sharon L. Thornton
Title: Director Investment Personnel,
Senior Analyst
WESTERN INVESTMENT LLC
By: /s/ Arthur D. Lipson
-------------------------------
Name: Arthur D. Lipson
Title: Sole Member
WESTERN INVESTMENT HEDGED PARTNERS
L.P.
By: Western Investment LLC
its General Partner
By: /s/ Arthur D. Lipson
-------------------------------
Title: Managing Member
WESTERN INVESTMENT ACTIVISM PARTNERS
LLC
By: Western Investment LLC
its Managing Member
By: /s/ Arthur D. Lipson
-------------------------------
Title: Managing Member
WESTERN INVESTMENT INSTITUTIONAL
PARTNERS LLC
By: Western Investment LLC
its Managing Member
By: /s/ Arthur D. Lipson
-------------------------------
Title: Managing Member
/s/ Arthur D. Lipson
--------------------------------
ARTHUR D. LIPSON
BENCHMARK PLUS INSTITUTIONAL PARTNERS,
L.L.C.
By: Benchmark Plus Management, L.L.C.,
Its General Partner
By: /s/ Scott Franzblau
-------------------------------
Name: Scott Franzblau
Title: Managing Member
By: /s/ Robert Ferguson
-------------------------------
Name: Robert Ferguson
Title: Managing Member
By: /s/ Michael Dunmire
-------------------------------
Name: Michael Dunmire
Title: Managing Member
--------------------- ---------------------
CUSIP No. 755881109 13D Page 23 of 25 Pages
--------------------- ---------------------
BENCHMARK PLUS MANAGEMENT, L.L.C.
By: /s/ Scott Franzblau
-------------------------------
Name: Scott Franzblau
Title: Managing Member
By: /s/ Robert Ferguson
-------------------------------
Name: Robert Ferguson
Title: Managing Member
By: /s/ Michael Dunmire
-------------------------------
Name: Michael Dunmire
Title: Managing Member
/s/ Scott Franzblau
--------------------------------------
SCOTT FRANZBLAU
/s/ Robert Ferguson
--------------------------------------
ROBERT FERGUSON
/s/ Michael Dunmire
--------------------------------------
MICHAEL DUNMIRE
--------------------- ---------------------
CUSIP No. 755881109 13D Page 24 of 25 Pages
--------------------- ---------------------
EXHIBIT 3
October 21, 2005
Mr. Dwight B. Crane
Mr. Paolo M. Cucchi
Mr. Robert A. Frankel
Dr. Paul Hardin
Mr. William R. Hutchinson
Mr. George Pavia
Mr. R. Jay Gerken
TO THE DIRECTORS OF THE REAL ESTATE INCOME FUND,INC (RIT)
Gentlemen:
As stockholders of RIT, we find the escalating levels of rhetoric and warnings
which are being included in your recent public filings increasingly disturbing.
Specifically, your October 13, 2005, letter to stockholders says:
"If the new management agreement is not approved by shareholders of the Fund,
the Fund will face considerable uncertainty and its ability to pursue its
investment objectives may be disrupted for an indefinite period following
consummation of the Transaction."
What exactly do you mean by "considerable uncertainty" and "disrupted for an
indefinite period"? If these are truly significant issues, why was no mention of
any of this in your proxy materials dated September 2, 2005.
Stockholders are required to vote on major transactions. You purportedly
represent the interests of all stockholders. This means you are responsible for
adequate management in all circumstances. Your responsibilities do not include
warnings of dire consequences and abdication of responsibility if stockholders
exercise their lawful rights to not approve an unadvisable transaction. It is,
in fact, your legal duty to prevent the sort of disruptions and uncertainties
which you describe.
We believe that it is imperative that immediate actions be taken to address the
wide discount to net asset value at which the Fund trades. There is an obvious
solution which would in my opinion gain the immediate acceptance of a majority
of the stockholders: MERGE THIS CLOSED END FUND INTO AN OPEN END FUND WITH
SIMILAR OBJECTIVES. We believe that this merger is obviously in the best
interest of the vast majority of stockholders. It would permit those investors
now trapped below fair value the opportunity to redeem at net asset value, while
permitting other investors to continue investing in a very similar strategy. We
don't understand why the board has not described to stockholders this simple
alternative?
And now, the board is recommending that Citigroup reap a windfall profit of $3.7
billion while stockholders continue to suffer below-market values. The issue of
--------------------- ---------------------
CUSIP No. 755881109 13D Page 25 of 25 Pages
--------------------- ---------------------
a persistent and significant discount to net asset value is not a "side-show",
as you call it, but rather a crucial issue for all stockholders.
Immediate action must be taken to eliminate the wide historical discount of RIT
to its net asset value. Immediate action must be taken to insure competent
management under any scenario.
We intend to pursue all available legal remedies to ensure that you meet your
fiduciary responsibilities, individually and together. These include, but are
not limited to, submission of nominations for new directors if you continue to
ignore these critical issues.
We were not surprised that the special stockholders' meeting was adjourned until
November 15, 2005. We call on the board to merge the Fund into an open end fund
with similar objectives and recognize the legitimate interests of all
stockholders. We will support the Board in such a proposal.
Absent your favorable response, we will continue to urge RIT stockholders to
vote against the new management and subadvisory agreements.
Very truly yours,
/s/ Arthur D. Lipson
------------------------------
Arthur D. Lipson
Managing Member of Western Investment LLC