The 2,700-acre property is reportedly listed under a $60 million price tag, following a deal in 2008 with billionaire Tom Barrack’s Colony Capital firm that inherited a $23 million debt. The company spent $5 million a year for upkeep of the Los Olivos, Calif. property which resulted in a $50 million deficit including the original debt.
A representative for Jackson’s estate told Forbes, “We are frustrated, bitterly disappointed and saddened that it has come to this. Sadly, Michael lost control of Neverland during his life as a result of advice from a former manager.”
Forbes also states:
“The agreement, which took effect in early 2008, called for Colony to manage Neverland as a sort of joint venture with Jackson. For every dollar the company invested in the property, its equity would increase. This meant that while Jackson—and, later, his estate—retained a stake in the property, it decreased on paper as time went on.”
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