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Michael Jackson said on Sunday a foreclosure sale on his Neverland Ranch set for this week was averted. -- PHOTO: AP
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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, which sources familiar with the matter said was about US$23.5 million (S$32.1 million), had been held by Fortress Investment Group , a New York-based private equity and hedge fund group. The 2,700-acre ranch in Santa Barbara County was slated to be auctioned off on May 14 after Jackson defaulted on loan payments.
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'. Colony, a Los Angeles-based firm that has invested more than US$39 billion since its founding in 1991, is 'very comfortable' holding the loan while it negotiates payment terms, a person familiar with the situation said.
Representatives of Jackson and Colony declined to comment.
A Fortress representative could not be reached for comment.
The formerly high-flying singer and songwriter saw his career slammed a child molestation trial in 2005. Even though he was acquitted on all counts, he has faced significant financial problems in recent years. -- REUTERS
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