Arden Nears Pact to Sell Telecom Services

Arden Realty Inc., one of the largest office property owners in Southern California, is close to signing an agreement with Eureka Broadband to sell telecommunications, Internet and related services to its tenants, company officials said. An announcement is expected to be made in the next couple of weeks, officials at the Los Angeles-based real estate investment trust told analysts and investors. Details concerning how the two companies would share revenue generated by the venture still need to be worked out. Arden owns and manages 14 properties with about 18.5 million square feet of space. It will take until August 2000 to wire the company’s buildings for the venture, the officials said. Based in New York, Eureka Broadband is a newly formed telecommunications company. Earlier this month, a group of eight of the largest office property owners in the U.S., including Equity Office Properties Trust and Spieker Properties Inc., formed a company with venture capital firm Kleiner Perkins Caufield & Byers to sell telecommunication services to their tenants. Arden shares fell 25 cents to close at $20.50 on the New York Stock Exchange.