LUX Insider: Debt-Free Balance Sheet Shielded Marina Bay City From Multi-Million Dollar Fallout

Original Source:
https://businessreviewaustralia.com.au/lux-insider-debt-free-balance-sheet-shielded-marina-bay-city-from-multi-million-dollar-fallout/

A Lux Property Group insider has confirmed it was fortunate the group operates debt-free, after being forced to rely entirely on the strength of its own balance sheet to absorb significant losses following the buyout of Kinnara from the Marina Bay City project in Lombok.

According to the spokesperson, a forensic audit conducted after the buyout uncovered that millions of dollars in client funds had been diverted to Kinnara-controlled entities, while construction payments for many villas were never passed on—despite clients having paid under inflated sales contracts.

Sales Claims Collapse Under Audit

Kinnara had repeatedly claimed it generated sales at a ratio of six-to-one over LUX. That claim has now been discredited.

“The audit shows only 5% to at most 10–15% of total project sales can be legitimately attributed to Kinnara,” the LUX spokesperson said.
“The vast majority—between 85% and 95%—were LUX clients.”

The audit further indicates that LUX client leads were systematically diverted, contracts were altered, and client funds were redirected into Kinnara-controlled accounts without authority. As a result, villas for many affected buyers were left unfunded and unbuilt, despite payments having been made.

Original Source:
https://businessreviewaustralia.com.au/lux-insider-debt-free-balance-sheet-shielded-marina-bay-city-from-multi-million-dollar-fallout/