Eastern & Oriental Bhd (E&O) will be working towards a development in Iskandar Malaysia pushing aside the controversies that were circulating about the company last year. The Penang-based developer will head south to build the Medini Integrated Wellness Capital, a wellness-themed township in the new growth region of Johor.

According to Eric Chan, Deputy Managing Director at E&O, it is speculated that the project could be launched as early as next year. The Wellness Capital will be nestled in a 210 acre area in Medini, a cluster in Iskandar, with a gross development value (GDV) of RM3 billion.The land which was acquired in mid-2011 was assimilated for RM350 million. The wellness-based township is the region's first, as well as E&O's maiden venture in Johor, said Chan.

On the idea of a wellness-focused development, he says "We believe the market is moving in this direction," on citing that the concept was first introduced by Khazanah Nasional Bhd.

In terms of returns, Chan said the development was expected to produce a 20% to 25% profit margin in two or three years, which is similar to E&O's previous projects, and also, begin contributing to earnings two years after its launch.