Special Interview Sharon’s Real Estate Ventures

A Polish-born French Jew, who immigrated to Israel after the Six-Day War. is head of the real estate investment group that bought the bankrupt Royal Manhattan Hotel in the heart of New York’s theater district. “It is our first experience in the United States.” Shmuel Sharon, the head of the group of Jewish investors from Holland and Switzerland, said.

The group bought the 1300-room hotel for $1 million. “We plan to invest $3 million more,” Sharon told the Jewish Telegraphic Agency. He said he plans to convert the building into 600 apartments to be used primarily for foreign businessmen and others coming to the United States for short stays.

The Royal Manhattan, which closed down in December 1974, is located on Eighth Avenue; a street that is dotted with hard-core pornographic theaters and book shops, massage parlors and prostitutes. It is one of the streets that New York City officials have been trying to clean up in their efforts to restore the Times Square area.

ACTIVE IN MANY COUNTRIES

Sharon, who was active in France in real estate under the name Samuel Flatto, has built several major projects in Israel during his eight years here. He and his group of investors have helped build such projects as the Tel Aviv bus station and Dizengoff Center, a commercial project in the heart of Tel Aviv.

They are now involved in a housing and office project in Ramat Gan and are building 6000 housing units in Sao Paulo, Brazil and 2000 housing units in Venezuela. In Venezuela, Sharon is working in partnership with the Histadrut’s Solel Boneh construction company.

Sharon, who looks younger than his 46 years, was born in Lodz, Poland in 1930 as Shmuel Shayewitz. His family left Poland in 1937 and moved to France. Sharon, then known as Flatto. started producing washing machines after World War II, but then discovered that his talents were better suited to real estate activity.

He set up companies which bought houses, renovated them and then sold them at tidy sums. His business continued to expand to a point where tens of millions of francs were involved. Sharon set up numerous ad hoc companies for special projects involving the buying, improving, developing and selling of houses and began to include in his companies individuals involved in the higher echelons of the French government a move which proved an asset to his business.

However, with the frequent changes of political regimes during the post-World War II period those business firms which included political personalities on their boards found themselves in difficulty. Sharon’s operations, like others, came under scrutiny from the opponents of political board members as well as from income tax officials who thought that some of his operations were not in strict keeping with income tax laws.

‘THAT WAS IT’

Sharon said that after the Six-Day War he became interested in Israel and began donating tunas The late Pinhas Sapir, then Israel’s Finance Minister, asked him why he didn’t operate any businesses in Israel. “I told him, ‘just bring me the right business and I am in.’ “Sharon said. Sapir then brought him together with Aryeh Pilitz, an Israeli businessman who was planning the new Tel Aviv bus station. “That was it.” he said, and in 1968 moved to Israel.

Meanwhile, France has charged that Sharon owes millions of France in income tax. His lawyers, he said, are working on the matter and are expected to clear it up soon. Till then, Sharon, whose business enterprises in France continue, to expand, is refraining from visiting that country.

While waiting out the legal moves. Sharon resides in the posh Savyon suburb of Tel Aviv. His home is decorated with French Impressionist paintings, and a treasured plaque from Asher Ben Nathan, Israel’s former Ambassador to Paris, praising the investor for his efforts in behalf of Israel. And he is busy with his business trips to the United States, Europe and South America. If his first venture in the United States turns out well, “we may continue there,” Sharon said.