MUMBAI: GV Films and Delhi-based real estate promoters Dynamic Infradevelopers are floating a 50:50 special purpose vehicle (SPV) for setting up a $one billion entertainment infrastructure project including a multiplex in Panvel near Mumbai.

The two partners are also setting up a marketing arm, Digipolis, which will raise funds for the project.

The paid up equity of Digipolis will be under Rs 1 billion. "This company will raise funds through various instruments including foreign direct investment," said Dynamic Infra Developers director Rajeev Agrawal.

GV Films, in consultation with Dynamic Infradevelopers, will finalise the executing and financing agencies for the project.

The first phase of the project would be $300 million. Dynamic will provide land while GV Films will invest in developing the property. "Our investment in land will amount to around 40 per cent of the cost. The balance funding will be the responsibility of GV Films," Agrawal said.

The project will include a multiplex, a luxury hotel, a beach and a casino. "We will even provide a small seater theatre for private viewing. They can order customised movies. Besides, there will be a 1,000-seater capacity multiplex," said Agrawal.

GV Films's library of 6000 movies, for which it owns internet rights, will be a part of the entertainment content the project will require. The company said it would employ more than 500 IT engineers specialising in media software.

GV Films recently received a placement proposal of investments from Hythe Securities Ltd, London, for $12 million. The investment is to be placed against GV Films' proposed GDR, between $20-25 million, filed at Luxemburg Stock Exchange and also filed for "in principle approval" at the Indian stock exchanges.