NagaCorp (HKG:3918) said ChenLipKeong Fund is exiting its investment in a 4,720-room resort casino under development in Cambodia's capital Phnom Penh, according to a Hong Kong bourse filing Monday.

Shares of the NagaWorld hotel and casino complex operator fell over 1% in afternoon trade Tuesday.

ChenLipKeong Fund, which is tied to the company's late controlling shareholder Chen Lip Keong, was exiting an agreement to fund half of the $3.5 billion Naga 3 expansion of the NagaWorld resort.

The decision follows "changing external macroeconomic environment since the entering of the subscription agreement in April 2019."

The firm forfeited $316 million paid to the company as part of its earlier commitment.

NagaCorp said it intends to continue developing Naga 3, and will explore alternative sources of funding if necessary.