In some instances cash-strapped estate developers have become embroiled in bitter disputes with contractors who claim not to have been paid for up to a year as funds have dried up.

And it is feared the stalling of the high-profile projects could be a major blow to tourism in the region as golfing holidays have become a major drawcard for international visitors.

“Golf tourism is a growing niche market,” said tourism specialist Peter Myles. “Our climate suits the game better than (wetter) climates in Europe.”

Adding to the crisis for developers has been the reluctance of banks to lend money to potential buyers and the tightening of lending criteria.

Economists say this has been a death knell for some developments needing massive loans which in the past required little or no deposits up front.

Due to the economic crisis, banks now require as much as a 30% deposit in some cases. “They are more risk averse than before, which can be seen in the higher deposits they require,” said BJM Securities economist Dr Elna Moolman.

“It will be more difficult to get funding and investors and banks are less keen to go into property investment than two or three years ago.”

One of the biggest casualties has been Nelson Mandela Bay‘s R1,5-billion Wedgewood Golf Estate, the completion of which has been pushed back by about 12 months. The slowdown was a result of banks withholding finance, said sales manager David Miller.

According to well-placed sources, fuming contractors downed tools in November over erratic payment for their services. Sources close to the project, set on 400ha in Greenbushes, said contractors walked off site late last year after not being paid regularly for several months, but Miller insisted all payments were now up to date.

When contacted yesterday former Wedgewood project facilitator responsible for finding the site, Simon Bezuidenhout, said he was still owed his “finder‘s fee” by the company, Pinnacle Point Holdings.

Although he would not confirm the amount he was owed, sources have tagged it at “well over R1-million”.

Of the 485 plots on the golf course, 230 had been sold and transferred since the launch of the estate in 2004, Miller said.

The retirement village – a major part of the initial development – had also been scrapped, the source claimed, after just 15 out of the 310 plots available had been sold. But Miller yesterday refuted the allegation, saying the retirement village was on track.

Just one house had been built on the Wedgewood site so far, but it would not have access to sewage works as work on the site‘s sewage plant had also ground to a halt, another source said, adding: “Because of the crisis the development has stalled which is a pity because it is a great development.”

Miller hit back at the allegations yesterday. “The world financial meltdown has caused us to slow down. The banks are not giving out bonds easily, but we will correct that,” he said.

“We expect to be fully open to the public in about 12 months‘ time.”

Another ambitious golfing estate to suffer is the R2-billion Woody Cape golf and residential estate, Le Repose, which despite being unveiled with much fanfare in 2006 has been scrapped completely after developers ran out of funds. The development was to include two 18-hole Nick Faldo-designed courses, three hotels and between 900 and 1200 plots for homes.

Yet another massive development which is also in dire straits is the R1,8-billion Addo Heights, which was to include a 27-hole golf estate as well as a five-star hotel, holiday units, an equestrian estate and an international equestrian school.

According to sources close to the project, the directors of the Netherlands-based development company, Green Zone, are embroiled in a bitter court battle over the alleged defrauding of the company.

Golf estates which have been halted because of the dire economic conditions include East London‘s R2,2-billion Sinati and Humansdorp‘s R1,2-billion Zwartenbosch.

While Sinati – headed by East London-born Billion Group executive chairman Sisa Ngebulana – is still continuing with the design of the golf course and estate, the project‘s launch has been delayed until next year.

Zwartenbosch has been delayed pending the unveiling of “a new financial package to help buyers afford property” in the coming weeks in a bid to lure investors. Only after 30% of the estate has been sold will development begin.

The R2-billion Lagoon Bay, between George and Mossel Bay on the Southern Cape coast, has only recently been given the go-ahead after it initially got the thumbs-down from the Department of Environmental Affairs.

But insiders say the dire economic climate could mean even more delays for the beleaguered project, which was launched in 2004.

Construction on Lagoon Bay is now said to start in February next year.

Market analysts say investors are more scared of taking risks than ever before, the reason for the premier estate developments running out of funds.