Royal Group Plans Long-Stay Serviced Apartments at Claymore Road

Royal Group of Companies, led by co-chairman Bobby Hiranandani, acquired the 17,974 sq ft freehold site at 11 Claymore Road for S$75 million. The site, located diagonally opposite the Pan Pacific Orchard hotel, currently houses a bungalow leased to The Schoolhouse by Busy Bees, formerly known as Pat’s Schoolhouse.

The company initially sought URA permission to develop a hotel on the site but was turned down. The URA instead suggested two alternatives: for-sale private housing, or a long-stay serviced apartment under its SA2 typology on a 10-year temporary permission. Royal Group opted for the SA2 route.

The SA2 concept, unveiled by the URA in November 2023, requires a minimum stay of three months, compared with seven days for regular serviced apartments. Royal Group was granted provisional permission in January for an 18-storey project initially designed for 96 apartments. An updated proposal, subject to URA approval, now calls for 102 apartments spread across levels 2 to 18.

DP Architects (DPA) is serving as the architectural and interior design consultant for the project. Each of the 102 apartments will measure between 42 and 45 sqm (452 to 484 sq ft) and feature two bedrooms, two bathrooms, a living and dining area, a balcony and a kitchenette.

The building will have six apartments per floor, with two units facing north, two facing south and two facing east. East-facing units will offer glimpses of the Orchard area through a southeast direction towards the Thai Embassy. South-facing units will look towards Tanglin Road, while north-facing units will enjoy views of the Ardmore and Draycott residential areas.

Mirror-image units at both ends of each floor are designed in a “dumbbell” configuration that allows them to be joined into a larger four-bedroom, four-bathroom apartment for families or groups requiring more space.

The ground floor will house the lobby and amenities, including a swimming pool, gym and wellness facilities, positioned at the rear of the site on what has been described as the “quiet, quaint side.” Private corners in the lobby will serve as work and meeting spaces, and a small cafe will operate on level one. A green communal terrace will occupy the mezzanine of level one, and an open terrace with a residents’ lounge will sit on the rooftop of the 18-storey building.

Bobby Hiranandani estimated the all-in cost at S$185 million to S$190 million, which includes the S$75 million land price, a land betterment charge of S$35.2 million, plus construction and fit-out costs, professional fees, buyer’s stamp duty and interest expense. The S$75 million purchase price works out to about S$2,190 per sq ft on a gross floor area (GFA) of 50,326 sq ft based on a plot ratio of 2.8. Including bonus GFA for balconies and indoor recreation, total GFA comes to about 54,229 sq ft, slightly more than a 3.0 plot ratio. Prior to the sale, 11 Claymore Road was put on the market in 2023 at a guide price of S$95 million, and earlier in 2007 at S$115 million. The sale was brokered by Karamjit Singh, chief executive of property consultancy Delasa.

Demand is expected to come from corporate relocations and foreign talent on work or consultancy stints of three to six months. Expats on longer employment contracts may use an SA2 apartment during their first three months while searching for permanent accommodation. Embassies in the surrounding area could provide another source of demand.

Monthly rentals are projected at about S$7,500 to S$8,000, which would be significantly below comparable serviced apartments in the area that charge between S$500 and S$600 a night, or more than S$15,000 a month. Royal Group plans to appoint a serviced apartment operator or hotel chain with a dedicated SA brand to run the property, offering full-service amenities including breakfast, housekeeping and room service.

The Claymore Road project is part of Royal Group’s broader push into hospitality. The company is also developing a 165-room Casa Mett hotel on the former Ming Arcade site in Cuscaden Road, which is scheduled to open next year.

In London’s Mayfair district, Royal Group acquired the former NatWest Bank Building at 63-65 Piccadilly for £65 million (US$85.8 million) and is investing £45 million (US$59.4 million) to convert it into the WestDill Mayfair Hotel London, a luxury 50-suite boutique hotel operating under Minor Hotels’ Colbert Collection brand.