This is the second major golf development to come under threat in the past six months. Highland Gate in Dullstroom went into liquidation after an application by one of its creditors, Investec Bank, which was owed R115m.

Kent Gush, marketing and sales director of Montagu Property group, which is marketing the Houghton development, said Murray & Roberts had taken possession of the property, the first phase of which was to have been completed by April. Gush could not confirm that Murray & Roberts was owned R150m. The construction company is said to be involved in talks with Asvid's owner, Irish developer David Nagle, to come to some sort of financial arrangement.

"Murray & Roberts does not want to take over development, it has exercised its lien as the contractor until the dispute has been resolved," said Gush.

The development, which was scheduled for completion by next year, consists of 320 luxury apartments, a five-star hotel with four restaurants, a luxury spa and a gymnasium. Some of the apartments, priced on average at R7,5m, have already been bought off-plan by prominent business executives and local and international property developers. Buyers have doubtless been drawn by the development's having been sited on the historic golf course, which is being redeveloped by golfing legend Jack Nicklaus.

Another attraction is the emphasis that has been placed on keeping the development as "green" as possible. Houghton Golf Club GM Eric van der Velde said yesterday that the club was not financially affected by the dispute.

"Asvid is not in breach of its contract with us, and we have not yet transferred the land," Van der Velde said.

Asvid owner Nagle was not available for comment yesterday, and nor was Murray & Roberts CEO Brian Bruce.