Royal Group plans long-stay serviced apartment project in Claymore Road

[SINGAPORE] Royal Group of Companies is planning to develop a long-stay serviced apartment project with about 100 units in Claymore Road.

Bobby Hiranandani, the group’s co-chairman, estimated the all-in cost for the project at S$185 million to S$190 million.

The figure includes the S$75 million the group paid for the 17,974 square foot (sq ft) freehold site at 11 Claymore Road last year, a land betterment charge of S$35.2 million, construction and fit-out costs, professional fees, buyer’s stamp duty and interest expense.

10-year temporary permission

Located diagonally opposite the Pan Pacific Orchard hotel, the site currently has a bungalow on it that used to be leased to The Schoolhouse by Busy Bees, formerly Pat’s Schoolhouse.

Royal Group, a Singapore-based property development and investment group, had initially sought Urban Redevelopment Authority’s (URA) permission to develop a hotel on the site, but this was turned down.

Instead, URA suggested two alternative redevelopment options for the residential-zoned site: a for-sale private housing project, or long-stay serviced apartment (also known as SA2 in URA’s typology) use on a 10-year temporary permission basis.

URA’s SA2 concept, unveiled in November 2023, entails a three-month minimum stay requirement vis-a-vis seven days for regular serviced apartments.

Royal Group took the SA2 option and upon application, was granted URA’s provisional permission in January for an 18-storey project with 96 apartments.

DP Architects (DPA) – Royal Group’s architectural and interior design consultant for the proposed project – is now fine tuning the scheme, incorporating comments received from URA and other agencies.

The updated proposal – which will be subject to URA approval – envisages a project with 102 apartments ranging from about 42 to 45 square metres (452 to 484 sq ft); these will be on 17 floors, from levels 2 to 18. Each apartment will have two bedrooms, two bathrooms, living and dining areas, a balcony and a kitchenette.

On the project’s ground floor will be the lobby and amenities (including a swimming pool, gym and other wellness facilities). The amenities will be tucked at the rear, on the “quiet, quaint side” of the plot, said DPA director Darren Yio.

Private corners will be provided in the lobby for residents to work or meet. There may be a small cafe on level 1.

The mezzanine of level 1 will be a green communal terrace area where residents can enjoy views of the grounds, including the pool.

On the roof of the 18-storey building will be an open terrace that is likely to have a lounge for residents.

Where demand is going to come from

Hiranandani expects business for Royal Group’s SA2 product to come from corporate relocations.

An example would be foreign talent coming to Singapore on work or consultancy stints of three to six months.

Expats on longer employment contracts may also find it feasible to stay in a SA2 facility in the first three months of arriving in the city-state before they find more permanent accommodation in the residential rental market, where most landlords typically issue leases of one to two years.

Embassies in the surrounding locations could provide another source of leasing demand for the Claymore Road SA2 project, said Hiranandani.

The S$75 million that Royal Group unit Royal Claymore paid for 11 Claymore Road works out to about S$2,190 per square foot on the gross floor area (GFA) of 50,326 sq ft allowed, based on the 2.8 plot ratio designated for the site in URA’s latest Master Plan.

Inclusive of bonus GFA for balconies and indoor recreation spaces, Royal Group’s proposed scheme will have a total GFA of about 54,229 sq ft, reflecting a slightly more than 3.0 plot ratio.

Karamjit Singh, chief executive of property consultancy Delasa, brokered 11 Claymore Road’s sale.

Prior to its sale last year, 11 Claymore Road was put on the market in 2023 at a guide price of S$95 million and in 2007, at S$115 million.

Royal Group plans to look for a serviced apartment operator or a hotel chain with a dedicated serviced apartment brand, to manage the property.

“The apartments will be fully furnished to hotel specifications. We are planning a full-service (offering) including breakfast, house-keeping and room service,” Hiranandani said.

“We are looking at monthly rentals of about S$7,500 to S$8,000 for the apartments. Similar-size serviced apartments in the area are selling at between S$500 and S$600 a night; which works out to S$15,000 and upwards a month,” he added.

Based on DPA’s proposed floor layout, which is subject to URA’s nod, there will be six apartments per floor. At both ends of each floor will be two apartments that are mirror-image units – akin to a dumbbell – that can be joined.

“This allows for conversion into a bigger apartment with four bedrooms, four bathrooms, as well as larger combined living and dining spaces,” noted Yio.

Augmenting group’s prime freehold assets

Two of the six apartments on each level will face north, another two will face south and the final two will face east.

“The east-facing apartments will have glimpses of the Orchard area, through the southeast direction, towards the Thai Embassy,” said Yio.

Units facing south will have Tanglin Road views; and north-facing units will have views of the Ardmore and Draycott residential areas.

“Locations like this don’t come up everyday,” said Hiranandani, referring to 11 Claymore Road.

The property will add to Royal Group’s collection of prime freehold assets in Singapore.

Its 165-room Casa Mett hotel on the former Ming Arcade site in Cuscaden Road is scheduled to open next year.

In London’s Mayfair district, the group acquired the former NatWest Bank Building at 63-65 Piccadilly for £65 million (US$85.8 million) last year and is investing a further £45 million (US$59.4 million) to convert the freehold property into a luxury 50-suite boutique hotel across six floors.

The property will be branded as WestDill Mayfair Hotel London, operating under Minor Hotels’ Colbert Collection.