SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 1)
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GREAT LAKES REIT, INC.
(Name of Issuer)
COMMON STOCK, $.01 PAR VALUE PER SHARE
(Title of Class of Securities)
390752 10 3
(Cusip Number)
----------------------
HAROLD J. SCHAAFF, JR.
MORGAN STANLEY ASSET MANAGEMENT INC.
1221 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10020
(212) 296-7000
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
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COPY TO:
Leonard B. Mackey, Jr, Esq.
Rogers & Wells
200 Park Avenue
New York, New York 10166
(212) 878-8000
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OCTOBER 3, 1996
(Date of event which requires filing of this statement)
===============================================================================
<square> Check box if the filing person has previously filed a statement on
Schedule 13G to report the acquisition which is the subject of this
Schedule 13D, and is filing this schedule because of Rule 13d-1(b)(3) or
(4).
<square> Check box if a fee is being paid with the statement.
===============================================================================
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CUSIP No. 390752 10 3 13D Page 2
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1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
MORGAN STANLEY INSTITUTIONAL FUND, INC. - U.S. REAL
ESTATE PORTFOLIO
I.R.S.# 13-3808424
- ---------------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) <checked-box>
(b) <square>
- ---------------------------------------------------------------------------------------
3. SEC USE ONLY
- ---------------------------------------------------------------------------------------
4. SOURCES OF FUNDS
WC
- ---------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) <square>
- ---------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
Maryland
- ---------------------------------------------------------------------------------------
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7. SOLE VOTING POWER
NUMBER OF 0
-------------------------------------------------------------------
UNITS 8. SHARED VOTING POWER
BENEFICIALLY 596,780*
-------------------------------------------------------------------
OWNED BY 9. SOLE DISPOSITIVE POWER
EACH 0
-------------------------------------------------------------------
REPORTING 10. SHARED DISPOSITIVE POWER
PERSON WITH 596,780*
- ---------------------------------------------------------------------------------------
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<CAPTION>
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
596,780*
- ---------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES
<square>
- ---------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.7%*
- ---------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
IV, CO
======================================================================================
</TABLE>
* Includes 30,780 Class A Convertible Preferred shares of the Issuer that
are exercisable on a one-to-one basis into Common Stock of the Issuer.
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CUSIP No. 390752 10 3 13D Page 3
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1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
MORGAN STANLEY SICAV SUBSIDIARY S.A.
- ---------------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) <checked-box>
(b) <square>
- ---------------------------------------------------------------------------------------
3. SEC USE ONLY
- ---------------------------------------------------------------------------------------
4. SOURCES OF FUNDS
AF
- ---------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) <square>
- ---------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
Luxembourg
- ---------------------------------------------------------------------------------------
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7. SOLE VOTING POWER
NUMBER OF 0
-------------------------------------------------------------------
UNITS 8. SHARED VOTING POWER
BENEFICIALLY 457,559*
-------------------------------------------------------------------
OWNED BY 9. SOLE DISPOSITIVE POWER
EACH 0
-------------------------------------------------------------------
REPORTING 10. SHARED DISPOSITIVE POWER
PERSON WITH 457,559*
- ---------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
457,559*
- ---------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES
<square>
- ---------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.1%*
- ---------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
OO
======================================================================================
</TABLE>
* Includes 23,559 Class A Convertible Preferred shares that are exercisable
on a one-to-one basis into Common Stock of the Issuer.
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CUSIP No. 390752 10 3 13D Page 4
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1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
MORGAN STANLEY SICAV - U.S. REAL ESTATE SECURITIES FUND
- ---------------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) <checked-box>
(b) <square>
- ---------------------------------------------------------------------------------------
3. SEC USE ONLY
- ---------------------------------------------------------------------------------------
4. SOURCES OF FUNDS
WC
- ---------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) <square>
- ---------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
Luxembourg
- ---------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
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7. SOLE VOTING POWER
NUMBER OF 0
-------------------------------------------------------------------
UNITS 8. SHARED VOTING POWER
BENEFICIALLY 457,559*
-------------------------------------------------------------------
OWNED BY 9. SOLE DISPOSITIVE POWER
EACH 0
-------------------------------------------------------------------
REPORTING 10. SHARED DISPOSITIVE POWER
PERSON WITH 457,559*
- ---------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
457,559*
- ---------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES
<square>
- ---------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.1%*
- ---------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
OO
======================================================================================
</TABLE>
* Includes 23,559 Class A Convertible Preferred shares of the Issuer that
are exercisable on a one-to-one basis into Common Stock of the Issuer.
Morgan Stanley SICAV beneficially owns the shares reported herein as the
owner of all outstanding capital of Morgan Stanley SICAV Subsidiary S.A.
This holding is being simultaneously reported herein by Morgan Stanley
SICAV Subsidiary S.A.
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CUSIP No. 390752 10 3 13D Page 5
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1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
MORGAN STANLEY ASSET MANAGEMENT INC.
I.R.S.# 13-3040307
- ---------------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) <checked-box>
(b) <square>
- ---------------------------------------------------------------------------------------
3. SEC USE ONLY
- ---------------------------------------------------------------------------------------
4. SOURCES OF FUNDS
OO
- ---------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) <square>
- ---------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- ---------------------------------------------------------------------------------------
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7. SOLE VOTING POWER
NUMBER OF 0
-------------------------------------------------------------------
UNITS 8. SHARED VOTING POWER
BENEFICIALLY 1,054,339*
-------------------------------------------------------------------
OWNED BY 9. SOLE DISPOSITIVE POWER
EACH 0
-------------------------------------------------------------------
REPORTING 10. SHARED DISPOSITIVE POWER
PERSON WITH 1,054,339*
- ---------------------------------------------------------------------------------------
</TABLE>
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<CAPTION>
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,054,339*
- ---------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES
<square>
- ---------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.8%*
- ---------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
IA, CO
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</TABLE>
* Includes 54,339 Class A Convertible Preferred shares of the Issuer,
exercisable on a one-to-one basis into Common Stock. Morgan Stanley Asset
Management Inc. may be deemed to beneficially own the shares reported
herein in its capacity as the investment adviser of Morgan Stanley
Institutional Fund, Inc. and Morgan Stanley SICAV Subsidiary S.A., whose
holdings are being simultaneously reported herein.
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CUSIP No. 390752 10 3 13D Page 6
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1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
MORGAN STANLEY GROUP INC.
IRS# 13-283-8811
- ---------------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) <checked-box>
(b) <square>
- ---------------------------------------------------------------------------------------
3. SEC USE ONLY
- ---------------------------------------------------------------------------------------
4. SOURCES OF FUNDS
OO
- ---------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) <square>
- ---------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- ---------------------------------------------------------------------------------------
</TABLE>
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7. SOLE VOTING POWER
NUMBER OF 0
-------------------------------------------------------------------
UNITS 8. SHARED VOTING POWER
BENEFICIALLY 1,054,339*
-------------------------------------------------------------------
OWNED BY 9. SOLE DISPOSITIVE POWER
EACH 0
-------------------------------------------------------------------
REPORTING 10. SHARED DISPOSITIVE POWER
PERSON WITH 1,054,339*
- ---------------------------------------------------------------------------------------
</TABLE>
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<CAPTION>
<S> <C> <C>
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,054,339*
- ---------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES
<square>
- ---------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.8%*
- ---------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
IA, CO
======================================================================================
</TABLE>
* Includes 54,339 Class A Convertible Preferred shares of the Issuer,
exercisable on a one-to-one basis into Common Stock. Morgan Stanley Group
Inc. may be deemed to beneficially own the shares reported herein in its
capacity as the owner of all the outstanding capital of Morgan Stanley
Asset Management Inc. This holding is being simultaneously reported
herein by Morgan Stanley Asset Management Inc.
PAGE
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AMENDMENT NO. 1 TO SCHEDULE 13D
This Statement, which is being filed jointly by Morgan Stanley
Institutional Fund, Inc. - U.S. Real Estate Portfolio ("MSIF"), Morgan Stanley
SICAV Subsidiary S.A. (the "SICAV Subsidiary"), Morgan Stanley SICAV - U.S.
Real Estate Securities Fund ("MSSICAV"), Morgan Stanley Asset Management Inc.
("MSAM") and Morgan Stanley Group Inc. ("MSGI") (each a "Filing Person" and
collectively, the "Filing Persons"), constitutes Amendment No. 1 to the
Statement on Schedule 13D relating to shares of Common Stock, par value $.01
per share (the "Shares"), of Great Lakes REIT, Inc., a Maryland Corporation
(the "Issuer") originally filed by MSIF, the SICAV Subsidiary, MSSICAV, MSAM
and MSGI with the Commission on August 30, 1996 (the "Schedule 13D").
Capitalized terms used but not defined in this Amendment No. 1 shall have the
meanings ascribed to them in the Schedule 13D.
ITEM 4. PURPOSE OF THE TRANSACTION.
Item 4 is hereby amended in its entirety as follows:
The Filing Persons acquired the Shares described at Item 5(c) below for
investment purposes, and in order to protect the investment in the Issuer, the
Filing Persons have obtained the right to nominate for election one Director to
the Issuer's Board of Directors, and have since the most recent filing on
Schedule 13D, exercised this right. The Filing Persons intend to continue to
consider various alternative courses of action and will in the future take such
actions with respect to their respective equity ownership in the Issuer as each
Filing Person deems appropriate in light of the circumstances existing from
time to time. Such actions may include making recommendations to management
concerning various business strategies, acquisitions, dividend policies and
other matters, pursuing a transaction or transactions involving a change in
control of the Issuer or such other actions as each Filing Person may deem
appropriate. Such actions also may involve the purchase of additional Shares
or, alternatively, may involve the sale of all or a portion of the Shares
beneficially owned by such Filing Person in the open market or in privately
negotiated transactions to one or more purchasers.
The Shares beneficially owned by the Filing Persons include the right to
acquire, subject to certain conditions, 300,000 shares of Common Stock and
16,301 shares of Class A Convertible Preferred Stock exercisable on a one-to-
one basis into Common Stock (the "Preferred Stock") of the Issuer on November
19, 1996. Except as described herein, the Filing Persons do not have any plans
or proposals which relate to or would result in (a) an extraordinary corporate
transaction, such as a merger, reorganization or liquidation, involving the
Issuer or any of its subsidiaries, (b) a sale or transfer of a material amount
of assets of the Issuer or any of its subsidiaries, (c) any change in the
present management of the Issuer, (d) any material change in the present
capitalization or dividend policy of the Issuer, (e) any other material change
in the Issuer's business or corporate structure, (f) any other material change
in the Issuer's charter, bylaws or instruments corresponding thereto or other
actions which may impede the acquisition of control of the Issuer by any
person, (g) causing a class of securities of the Issuer to be delisted from a
national securities exchange or to cease to be authorized to be quoted in an
inter-dealer quotation system of a registered national securities association,
(h) a class of equity securities of the Issuer becoming eligible for
termination of registration pursuant to Section 12(g)(4) of the Securities
Exchange Act of 1934, or (i) any action similar to any of the enumerated in (a)
through (i) above.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
The following is added to Item 5(c):
7
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On October 3, 1996, MSIF and the SICAV Subsidiary, in a transaction
effected by MSAM as investment adviser, acquired 350,000 shares of Common Stock
and 19,019 shares of Preferred Stock. Of this, MSIF acquired 202,000 shares of
Common Stock and 11,000 shares of Preferred Stock (for an aggregated purchase
price of $2,626,000) and the SICAV Subsidiary acquired 148,000 shares of Common
Stock and 8,019 shares of Preferred Stock (for an aggregated purchase price of
$1,924,000). The Common Stock and Preferred Stock were purchased in the
aggregate and not for a specific price per share. The transaction described
herein took place in Chicago, Illinois. Other than the purchases described in
this Amendment No. 1, none of Filing Persons have made any transactions within
the past 60 days.
As had been contemplated by MSAM, MSIF and the SICAV Subsidiary,
MSAM, prior to the closing on October 3, 1996, in its capacity as investment
adviser to MSIF and the SICAV Subsidiary, reallocated the amount of Common
Stock and Preferred Stock that each of MSIF and the SICAV Subsidiary was to
receive on October 3, 1996, resulting in MSIF acquiring 6,000 additional shares
of Common Stock and 349 additional shares of Preferred Stock from that
originally contemplated in the initial Schedule 13D filing. The foregoing
allocations to MSIF resulted in a corresponding decrease in shares beneficially
owned by the SICAV Subsidiary and MSSICAV.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
The following is added to Item 6:
There exists an agreement of Joint Filing (previously filed as Exhibit
7.1) between the Filing Persons with respect to the filing of this Amendment
No.1 to the Schedule 13D.
However, there exists no contracts, arrangements, understandings or
relationships (legal or otherwise) between any Filing Person and other persons
with respect to finder's fees, joint ventures, loan or option arrangements,
puts or calls, guarantees of profits, division of profits or loss, or the
giving or withholding of proxies.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Not applicable.
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: October 16, 1996
MORGAN STANLEY INSTITUTIONAL FUND, INC. -
U.S. REAL ESTATE PORTFOLIO
/S/ WARREN OLSEN
Name: Warren Olsen
Title: President
MORGAN STANLEY SICAV - U.S. REAL ESTATE SECURITIES
FUND
/S/ KAREN FROST
Name: Karen Frost
Title: Vice President
MORGAN STANLEY SICAV SUBSIDIARY S.A.
/S/ KAREN FROST
Name: Karen Frost
Title: Vice President
MORGAN STANLEY ASSET MANAGEMENT INC.
/S/ WARREN OLSEN
Name: Warren Olsen
Title: Principal
MORGAN STANLEY GROUP INC.
/S/ STUART BRESLOW
Name: Stuart Breslow
Title: Principal
<PAGE>
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