Colony Capital to sell Neverland

[curls]

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Hi:

You will soon be reading news reports stating that Colony Capital has decided to sell Neverland. As the property manager, they have the right to do this. The Estate has issued the following statement in response to a media request for comment:

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. The Estate will maintain Michael's family home in Encino, including its iconic recording studio there. We continue to build upon Michael's legacy as an artistic genius and humanitarian through his music and new projects such as the Michael Jackson ONE show in Las Vegas. We hope and trust that any new owners of Neverland will respect the historical importance and special nature of this wonderful property. Michael's memory lives on in the hearts of his fans worldwide.

It is also important to the Estate that Michael's fans understand that although the Estate has no right to stop or obstruct the sale, The Estate did explore a number of potential options for Neverland with Colony but zoning, financial and land use restrictions limited the alternatives and ultimately Colony made the decision to sell.


MJOnline
The Official Online Team of The Michael Jackson Estate™

[RK]

I'm saddened to hear this.
Neverland looks so beautiful in the pics from the link I'm posting.
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[RK]

The Estate must be in agreement to sell as they still own a large percentage of Neverland.

Editting post to add this.

Michael Jackson's Neverland Is About To Be Sold

Michael Jackson helped create a fundamental shift in the monetization of fame, and that’s the notion at the core of Michael Jackson, Inc, the first business-focused biography of the King of Pop. He earned an estimated $1.1 billion during his adult solo career—nearly $2 billion when adjusting for inflation. Read on for the year-by-year breakdown, excerpted from the book.
Though Michael Jackson moved out of Neverland years before his untimely passing, the 2,700-acre property remains indelibly associated with the King of Pop to this day. Soon, however, the connection will be only in thought, not deed: Neverland is set to be sold.

According to sources familiar with the matter, billionaire Tom Barrack’s Colony Capital is preparing to put the Los Olivos, Calif. property on the market. The firm became Neverland’s managing partner after Barrack struck a deal with Jackson in late 2007 to take over the $23 million note held by private equity fund Fortress.

“We are frustrated, bitterly disappointed and saddened that it has come to this,” said a representative for Jackson’s estate in an electronic message to FORBES. “Sadly, Michael lost control of Neverland during his life as a result of advice from a former manager.”

Representatives for Colony Capital could not immediately be reached for comment.

As I reported in Michael Jackson, Inc: The Rise, Fall and Rebirth of a Billion-Dollar Empire , the agreement between Jackson and Colony was a complex one. Barrack himself said he only took on the note as a favor to Jackson (in an interview for the book, he recalled his words to the singer: “Don’t have me do this … unless you’re really interested in building a program going forward to create some revenue for yourself.”)

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.


Over the past six years, Colony has continued to fund the upkeep of Neverland. That cost, if it’s anything like it was in Jackson’s day, is likely in the neighborhood of $5 million per year. Add in the $23 million note, and back-of-the-envelope math suggests the firm may have invested more than $50 million in the property to date. It also retains the right to sell the property at will.

Still, many options were explored over the years. Toward the end of his life, Jackson himself is said to have been intrigued by the idea of turning Neverland into a school for the performing arts; after his death, many have suggested that the property be turned into an attraction like Elvis Presley’s Graceland.

But as anyone who’s been to Neverland (this writer included) can tell you, Los Olivos isn’t exactly Memphis. The area is nowhere near an interstate, and its narrow mountain roads aren’t conducive to accommodating hundreds of thousands of visitors a year.

“The Estate explored numerous options, including a purchase,” continued the aforementioned representative’s statement. “But financial, land use and zoning restrictions have made all of the proposed options prohibitive given our duty as Executors to be fiscally responsible in protecting and growing the assets of the Estate for Michael’s children.”

Indeed, Jackson’s estate has pulled in more than three quarters of a billion dollars in a little over five years since his death. But that’s before taxes and expenses, not to mention the specter of a $702 million IRS bill that the estate is currently appealing.

Buying back Colony’s share of Neverland—not to mention footing a multimillion-dollar annual upkeep bill for a property that does not generate income—would seem to be an imprudent financial choice.


And so, Neverland may soon have a new owner on paper. But any buyer will have to understand the property will always be the King of Pop’s realm in the minds of millions.

[reveron1958]

I feel really sad about this. Another reason to think that he is no longer with us.  :icon_e_sad:

[curls]

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 estat—retained a stake in the property, it decreased on paper as time went on.

If Neverland was so tainted in MJ's eyes after 2005, I wonder why he didn't sell up then, or even in 2008, instead of entering this business arrangement that would clearly see his stake in it systematically whittled away with each passing year. What happened to the savvy businessman?

[~Souza~]

He might be buying it back himself.

[RK]

From this line, seems the Estate is placing the blame on Thome.

“Sadly, Michael lost control of Neverland during his life as a result of advice from a former manager.”

[curls]

He might be buying it back himself.

That was my first thought too!  After all, he's been living there these past 5 years ... hasn't he?!

(Amazing pics by the way RK in that link you posted.)

[curls]

From this line, seems the Estate is placing the blame on Thome.

“Sadly, Michael lost control of Neverland during his life as a result of advice from a former manager.”

See, this is what I meant by my 'savvy businessman' comment.  Maybe I'm naive, or not seeing something, but if I (without the 'benefit' of advisors) can see how this arrangement was going to play out, I find it hard to believe MJ couldn't. And I have yet to be convinced of the elusive Thome's true colours.

Is it beyond the realms of possibility, that this 2008 deal and it's outcome, now playing out, with emotional reactions and sadness throughout his fan community, was entered into with full understanding by MJ?  Sorry if that's too hoaxy for these days.

Most likely I am not in possession of the full facts!

[blankie]

He might be buying it back himself.

Totally agree Souza.

I think Michael wants to be again the only  owner of Neverland  :moonwalk_:



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[youtube]ZZBt6IYzQlo[/youtube]

[ShyBleuEyes]

my thought were that Mj is living in the encino house. because the reports said MJ did not want to return to Neverland anymore. Although it could be a distraction, also..
Neverland is really a paradise on earth,  And a great hideout!

[a18wheelslady]

A long time ago i said the best way to get people to stay away from there was to say he would never ever go back. that left it open for him to return with no worries. to this day i think it was all in his plan. I agree with SOUZA.

 

[RK]

Barrak has said the property could be worth 100 million. He would be reimbursed the first 50.
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[ShyBleuEyes]

link from Twitter account Troot research:

to me, this came to my mind #ParisInterview---> pic.twitter.com/KsNNYH8hZb
Permalink voor ingesloten afbeelding
[img]http://to me, this came to my mind #ParisInterview---> pic.twitter.com/KsNNYH8hZb

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Again i tried to add the actual text, but failed again, maybe someone can.

[ShyBleuEyes]

[youtube]http://www.youtube.com/watch?v=-G_PIGzJucw&feature=youtu.be&list=PL976855DB39198BC7[/youtube]