Foreclosure on Jackson's Ranch Averted

Reuters

Posted: 2008-05-12 12:32:35

Filed Under: Entertainment News, Top News

NEW YORK -- Entertainer Michael Jackson said on Sunday a foreclosure sale on his Neverland Ranch set for this week was averted after a loan on the California property was sold to Colony Capital, a large real estate investment firm.

The loan had been held by Fortress Investment Group, a New York-based private equity and hedge fund group.

Neverland Ranch

A last minute deal has saved Michael Jackson's Neverland Ranch from being lost to foreclosure. Just days before the ranch was to be sold off, a real estate investment firm called Colony Capital bought the loan on the singer's fortress.

Mark J. Terrill, AP

Jackson is said to be in discussions with Colony and its founder, Tom Barrack Jr, "with regard to the ranch and other matters." The King of Pop hasn't stepped foot on the compound in more than two years, spending his time in Europe and Middle East since his 2006 acquittal on child molestation charges.

Danny Moloshok, AP

The ranch sprawls over 2,800 acres and features a main home, a theme park and a zoo that once housed tigers, elephants, giraffes and orangutans. The animals were removed and the ranch shut down in early 2006 following an investigation into whether Jackson had stopped paying his employees and allowed his insurance to lapse.

Armando Arorizo, ZUMA Press

Jackson's overall financial situation has stabilized in the past year, thanks to a refinanced loan with help from his label Sony Music.

Jason Kirk, Getty Images

Above is the Neverland train that used to ferry guests -- mostly kids -- around the park.

Kevin Winter, Getty Images

Jackson named his property Neverland after the fantasy world in 'Peter Pan.'

Mark J. Terrill, AP

The loan was about $23.5 million, according to a source familiar with the matter.

In a press release, Jackson said he was in discussions with Colony and its founder, Tom Barrack Jr, "with regard to the ranch and other matters."

Representatives of Jackson and Colony did not provide additional details. A Fortress representative could not be reached for comment.

The formerly high-flying singer and songwriter saw his career slammed by child molestation charges in 2005. Even though he was acquitted on all counts, he has faced significant financial problems in recent years.

Reporting by Dane Hamilton; editing by John Wallace

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2008-05-11 17:01:49

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