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. 2)(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)
December 14, 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 22 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 22 Pages
---------------------- -----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
WESTERN INVESTMENT 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*
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
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 537,600
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
537,600
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
537,600
--------------------------------------------------------------------------------
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 22 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 538,600
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
538,600
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
538,600
--------------------------------------------------------------------------------
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 22 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 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 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 22 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 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 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 22 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 26,300
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
26,300
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
26,300
--------------------------------------------------------------------------------
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 22 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 254,500
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
254,500
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
254,500
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.3%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- -----------------------
CUSIP No. 755881109 13D Page 8 of 22 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*
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
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 254,500
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
254,500
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
254,500
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.3%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- -----------------------
CUSIP No. 755881109 13D Page 9 of 22 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 254,500
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
254,500
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
254,500
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.3%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- -----------------------
CUSIP No. 755881109 13D Page 10 of 22 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 254,500
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
254,500
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
254,500
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.3%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- -----------------------
CUSIP No. 755881109 13D Page 11 of 22 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 254,500
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
254,500
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
254,500
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.3%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- -----------------------
CUSIP No. 755881109 13D Page 12 of 22 Pages
---------------------- -----------------------
The following constitutes Amendment No. 2 ("Amendment No. 2") to the
Schedule 13D filed by the undersigned. This Amendment No. 2 amends the Schedule
13D as specifically set forth.
Items 2 and 4 are hereby amended to add the following:
The Special Meeting of Shareholders of the Issuer was held on November
29, 2005, at which time the shareholders of the Issuer approved a new investment
management contract between the Issuer and the Issuer's investment adviser. As a
result, the Issuer's investment adviser became a wholly-owned subsidiary of Legg
Mason, Inc. Accordingly, the Section 13D group comprised of the Reporting
Persons and Karpus has agreed to disband effective December 1, 2005. There are
currently no agreements between the Reporting Persons and Karpus regarding the
securities of the Issuer. The Reporting Persons will continue filing as a group
statements on Schedule 13D with respect to their beneficial ownership of
securities of the Issuer to the extent required by law.
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 537,600 Shares beneficially owned
by WILLC is approximately $9,961,421, 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 additional
1,000 Shares owned by Mr. Lipson is approximately $18,610. The aggregate
purchase price of the 254,500 Shares beneficially owned by BPM is approximately
$4,646,642, including brokerage commissions. The Shares beneficially owned by
BPM were acquired with the working capital of BPIP.
Items 5(a)-(c) are hereby amended and restated to read as follows:
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 December 14, 2005, WIHP, WIIP and WIAP
beneficially owned 327,100, 184,200 and 26,300 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 537,600 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 537,600 Shares beneficially owned by WILLC, in
addition to the 1,000 Shares personally owned by Mr. Lipson, constituting
approximately 4.9% of the Shares outstanding.
---------------------- -----------------------
CUSIP No. 755881109 13D Page 13 of 22 Pages
---------------------- -----------------------
As of the close of business on December 14, 2005, BPIP beneficially
owned 254,500 Shares, constituting 2.3% of the Shares outstanding. As the
managing member of BPIP, BPM may be deemed to beneficially own the 254,500
Shares beneficially owned by BPIP, constituting approximately 2.3% of the Shares
outstanding. As the managing members of BPM, Messrs. Franzblau, Ferguson and
Dunmire may be deemed to beneficially own the 254,500 Shares beneficially owned
by BPM, constituting approximately 2.3% 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 Amendment No. 1 to 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:
Effective December 1, 2005, the Reporting Persons terminated their
obligations under the Joint Filing and Solicitation Agreement with Karpus. On
December 15, 2005, the Reporting Persons entered into a Joint Filing Agreement,
which is attached hereto as Exhibit 4 and is herein incorporated by reference.
Item 7 is hereby amended to add the following exhibit:
4. Joint Filing 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, dated December 15, 2005.
5. Termination notice to Karpus Management, Inc. dated December 1,
2005.
---------------------- -----------------------
CUSIP No. 755881109 13D Page 14 of 22 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: December 15, 2005 WESTERN INVESTMENT L L C
By: /s/ Arthur D. Lipson
-----------------------
Name: Arthur D. Lipson
Title: Sole Member
WESTERN INVESTMENT HEDGED PARTNERS LP
By: Western Investment L L C,
Its General Partner
By: /s/ Arthur D. Lipson
-----------------------
Name: Arthur D. Lipson
Title: Managing Member
WESTERN INVESTMENT INSTITUTIONAL PARTNERS
L L C
By: Western Investment L L C,
Its Managing Member
By: /s/ Arthur D. Lipson
-----------------------
Name: Arthur D. Lipson
Title: Managing Member
WESTERN INVESTMENT ACTIVISM PARTNERS L L C
By: Western Investment L L C,
Its Managing Member
By: /s/ Arthur D. Lipson
-----------------------
Name: 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 Managing Member
---------------------- -----------------------
CUSIP No. 755881109 13D Page 15 of 22 Pages
---------------------- -----------------------
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 16 of 22 Pages
---------------------- -----------------------
SCHEDULE A
----------
TRANSACTIONS IN THE SHARES SINCE THE FILING OF AMENDMENT NO. 1 TO SCHEDULE 13D
------------------------------------------------------------------------------
Shares of Common Stock Price Per Date of
PURCHASED SHARE($) PURCHASE
--------- -------- --------
WESTERN INVESTMENT HEDGED PARTNERS L.P.
---------------------------------------
None
WESTERN INVESTMENT INSTITUTIONAL PARTNERS LLC
---------------------------------------------
None
WESTERN INVESTMENT ACTIVISM PARTNERS LLC
----------------------------------------
100 18.7650 12/06/05
BENCHMARK INSTITUTIONAL PARTNERS, L.L.C.
----------------------------------------
100 18.1400 10/25/05
14,000 18.0431 11/07/05
1,700 18.0071 11/08/05
14,000 18.0339 11/09/05
11,300 18.1816 11/10/05
200 18.6800 12/06/05
5,900 18.4925 12/07/05
16,500 18.6053 12/08/05
4,200 18.5043 12/09/05
19,200 18.5688 12/12/05
12,500 18.5062 12/13/05
35,300 18.6068 12/14/05
WESTERN INVESTMENT LLC
----------------------
None
BENCHMARK PLUS MANAGEMENT, L.L.C.
---------------------------------
None
ARTHUR D. LIPSON
----------------
1000 18.6100 12/14/05
---------------------- -----------------------
CUSIP No. 755881109 13D Page 17 of 22 Pages
---------------------- -----------------------
SCOTT FRANZBLAU
---------------
None
ROBERT FERGUSON
---------------
None
MICHAEL DUNMIRE
---------------
None
---------------------- -----------------------
CUSIP No. 755881109 13D Page 18 of 22 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 the 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 (previously
filed).
3. Letter to the members of the Board of Directors, dated October --
21, 2005 (previously filed).
4. Joint Filing Agreement by and among Western Investment LLC, 19-20
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, dated December 15, 2005.
5. Termination Notice to Karpus Management, Inc. dated December 1, 21-22
2005
---------------------- -----------------------
CUSIP No. 755881109 13D Page 19 of 22 Pages
---------------------- -----------------------
EXHIBIT 4
JOINT FILING AGREEMENT
In accordance with Rule 13d-1(k)(1)(iii) under the Securities Exchange
Act of 1934, as amended, the persons named below agree to the joint filing on
behalf of each of them of a Statement on Schedule 13D dated December 15, 2005
(including amendments thereto) with respect to the securities of Real Estate
Income Fund Inc. This Joint Filing Agreement shall be filed as an Exhibit to
such Statement.
Dated: December 15, 2005
WESTERN INVESTMENT L L C
By: /s/ Arthur D. Lipson
-----------------------
Name: Arthur D. Lipson
Title: Sole Member
WESTERN INVESTMENT HEDGED PARTNERS LP
By: Western Investment L L C,
Its General Partner
By: /s/ Arthur D. Lipson
-----------------------
Name: Arthur D. Lipson
Title: Managing Member
WESTERN INVESTMENT INSTITUTIONAL PARTNERS
L L C
By: Western Investment L L C,
Its Managing Member
By: /s/ Arthur D. Lipson
-----------------------
Name: Arthur D. Lipson
Title: Managing Member
WESTERN INVESTMENT ACTIVISM PARTNERS L L C
By: Western Investment L L C,
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 20 of 22 Pages
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BENCHMARK PLUS INSTITUTIONAL PARTNERS, L.L.C.
By: Benchmark Plus Management, L.L.C.,
Its Managing Member
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 21 of 22 Pages
---------------------- -----------------------
December 1, 2005
VIA ELECTRONIC MAIL AND FACSIMILE
Karpus Management, Inc.
183 Sullys Trail
Pittsford, New York 14534
Re: REAL ESTATE INCOME FUND INC.
Gentlemen:
The undersigned hereby terminates his/its obligations under that certain
Joint Filing and Solicitation Agreement dated September 14, 2005, as amended on
October 21, 2005, effective immediately.
Very truly yours,
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 ACTIVISM PARTNERS LLC
By: Western Investment LLC
its Managing Member
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
/s/ Arthur D. Lipson
-----------------------------
ARTHUR D. LIPSON
BENCHMARK PLUS INSTITUTIONAL PARTNERS, L.L.C.
By: Benchmark Plus Management, L.L.C.,
Its Managing Member
By: /s/ Scott Franzblau
-----------------------------------------
Name: Scott Franzblau
Title: Managing Member
cc/ Steve Wolosky
---------------------- -----------------------
CUSIP No. 755881109 13D Page 22 of 22 Pages
---------------------- -----------------------
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
cc/ Steve Wolosky