DC4MS

Will Michael Jackson’s Neverland become the next A&K RC property?

Try and follow this logic as this is 100% pure speculation.

Fortress Investment GFroup (NYSE: FIG) owns Abercrombie & Kent, a subsidiary of timeshare specialist Intrawest, now the 6th largest Destination Club also owns Michael Jackson’s 2,900-acre Neverland Ranch, the fabled ranch, scene of many parties for children and at least a couple of police raids, may be vulnerable to foreclosure.

The mortgage broker trying to find refinancing for Jackson on a $23 million loan held by Fortress Investments using Neverland as security has so far come up empty. There is literally no interest from anyone in saving Jackson in this situation.

If Neverland is not refinanced, Fortress can foreclose and sell the ranch at auction or simply add it as an unbelievable DESTINATION CLUB property. Recently, Fortress laid off $300 million in loans to Jackson on HSBC. The refinancing resulted in Jackson's paying off around $20 million in debt, but it still left him cash-strapped and unable to deal with the Neverland crisis.

According to Fox News - The auction is set for May 14, and I am told the vultures are circling with cashier's checks. Among them: at least some form of the original loan holder, Fortress Investments. "I know they want it," says a source, "and there are three or four others." Bidders will show up on May 14 at the Santa Barbara County Courthouse.

Stranger things have happened before.

3DH

Wow, that's an interesting concept!

__________________
"Boutique" is better! Another extremely satisfied LUSSO member!

Kagehitokiri

when is he going to sell off more of his beatles rights??

funny that fortress happens to be connected here. a renovation MIGHT work, but i cant imagine staying there.

DC4MS

NEW YORK (Reuters) - 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 $23.5 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 $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.

travelenthusiast

Doubt it will happen

DC4MS

I was the single person who created this speculation and have no inside information other than the public records that are freely available to anyone.

Of course, I never thought this property would become a DC, I just found the 0.1% possibility of something being done with this property by A&K an interesting topic for discussion.

A few blogs and web sites have even referenced this post.

Kagehitokiri

links?