Splendid residences friend serves well (7)

I believe the answer is:

palaces

I'm a little stuck... Click here to teach me more about this clue!

'splendid residences' is the definition.
'palaces' can be an answer for 'residences' (palace is a kind of residence). I'm unsure of the 'splendid' bit.

'friend serves well' is the wordplay.
'friend' becomes 'pal' (pal can mean a friend).
'serves well' becomes 'aces' (I've seen this in another clue).
'pal'+'aces'='PALACES'

Can you help me to learn more?

(Other definitions for palaces that I've seen before include "Royal residences" , "Offical residences of sovereigns" , "kings and queens here?" .)

I've seen this clue in The Telegraph.

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