LUX Says Costly Legacy Defects and Missing Funds Allegations Follow Kinnara Exit
LUX Property Group says it has spent what it describes as “a small fortune” rectifying legacy construction defects left behind by a builder it terminated last year across three of its projects, a builder LUX alleges was introduced and funded by Kinnara.
According to LUX, the termination was necessary after what it characterises as serious workmanship failures that required extensive remediation to protect buyers and the long term viability of the developments.
Hotel K Roof Fully Removed
Among the most significant works, LUX states that the entire roof structure at Hotel K had to be removed and replaced. The company claims the defects were so substantial that partial repairs were not viable, requiring full dismantling and reconstruction.
In addition, plumbing systems were reportedly replaced due to installation concerns and compliance risks. LUX says these rectification works added significant unplanned costs and contributed to project delays.
Lux Village Rectification
At Lux Village, LUX claims it undertook substantial corrective works, including:
• Structural adjustments
• Plumbing corrections
• Waterproofing repairs
• Finishing and compliance upgrades
The company says the remedial program was essential to restore build integrity and maintain rental performance targets.
$1.45 Million Claim in Dispute
LUX further states that the same builder is now pursuing approximately AUD $1.45 million in advance payments.
However, LUX contends this claim does not account for rectification expenses, delay damages, penalties, and associated opportunity losses. The financial dispute remains contested.
⸻
Broader Dispute Following Kinnara Removal
The construction issues form part of a wider breakdown in relations after LUX says Kinnara was formally removed from the Marina Bay project. Its CEO, Adrian Campbell, subsequently resigned as a commissioner.
Following the separation, LUX states that internal audits identified between AUD $4–$5 million in funds it alleges remain unaccounted for. These findings are disputed and remain subject to ongoing legal and commercial disagreement between the parties.
The situation comes against the backdrop of earlier investigations into Mr. Campbell’s former company, GIM Trading, where approximately AUD $23 million was reported missing from client accounts.
The matter has been examined by the Australian Securities and Investments Commission and reported on by the Australian Broadcasting Corporation. Regulatory scrutiny relating to those events has been publicly documented, and related matters remain part of the broader narrative surrounding the dispute.
LUX further alleges that it is believed some of the disputed funds may have been used to acquire or fund the Saraya Lombok development, which Kinnara is currently marketing. These allegations have not been independently verified, and Kinnara has previously denied wrongdoing.
The broader conflict remains contested on multiple fronts, with financial claims, contractual disputes, and reputational issues likely to be resolved through formal legal and regulatory channels rather than public statements alone.