Michael Jackson's Neverland ranch estate to go on the market

Michael Jackson's Neverland ranch in Los Olivos, Calif. (AP Photo/2009)

LOS OLIVOS, Calif. (WJLA) - Members of the Jackson family confirmed to entertainment news website that the company that owns a majority stake in the late Michael Jackson's "Neverland" estate plans to sell it.

The ranch was co-owned by Colony Capital and Jackson. Colony paid off Jackson's $23-million mortgage many years ago to save it from foreclosure.

According to the terms of the deal, Colony Capital has the legal right to sell the property to make up the debt Jackson owed them on that mortgage.

RadarOnline printed a statement by Jackson family representatives with respect to the rumored sale:

“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 statement read.

The family reps said they will retain ownership of Jackson's other home in California.

"The estate will maintain Michael’s family home in Encino, including its iconic recording studio there," the statement continued.

According to RadarOnline, tax records assess Neverland at around $27 million, though real estate experts say the price tag could reach $60 million for the 3,000-acre ranch estate.