Michael Jackson’s famous Neverland Ranch is to be sold.
The Santa Ynez property will reportedly be put on the market by Colony Capital – who own a primary stake in the estate – after buying out the late singer’s $23 million mortgage to save it from foreclosure in 2008 – in order to recoup the debt they are owed on the house.
It comes after the singer’s children were involved in a restoration project last year to restore the estate to its former glory after it fell into disrepair.
A source told RadarOnline.com: ‘Colony Capital has the legal right to sell the property to pay down the debt they are owed from the loan, interest, management fee and maintenance costs.’
The property is worth around $27 million, but insiders believe it could fetch as much as $60 million because of its famous former owner.
Officials from Michael’s estate said they are ‘saddened’ by the news of the sale but insist they plan to keep the legacy of the Thriller hitmaker – who died of acute Propofol intoxication in June 2009 – going strong at his other former home.
They said in a statement: ‘We are saddened at the prospect of the sale of Neverland which, under the agreement negotiated during Michael’s lifetime, Colony has the right to sell.