If you don't want to add to User class
use custom/DatabaseEntity
and you want to extend custom/DatabaseEntity
you may just change class declaration from
namespace shared;
class User extends DatabaseEntity {
}
to
namespace shared;
class User extends \custom\DatabaseEntity {
}
if you want to extend \custom\DatabaseEntity.
If it's not want you want to achieve I cannot understand your problem - you ask two questions.
You asked
If we wanted to create a custom DatabaseEntity class without creating a custom User class , is this possible?
The answer is - yes, you just created it in your example. You created custom DatabaseEntity class without creating custom User class.
But if you want to achieve:
it needs to look at the top level classes directory
you need to tell User class to extend specific class - so you will need to extend using fully qualified class or import namespace using use and creating alias