Florida's Home Financial Corp., preparing for its acquisition by First Union Corp., has spun off its residential real estate development subsidiary.

Home Financial, based in Hollywood, this week sold its $29 million-asset American Home Service Corp. in two parts - its mortgage portfolio and its real estate holdings - to undisclosed buyers for $30.3 million, about 70% of book value.

The sale of American Home was required in $1.2 billion-asset Home Financial's deal with First Union.

As a result of certain tax benefits, the sale will alter the exchange ratio. In effect, Home Financial's shareholders will receive about 17 cents in additional First Union stock, Home Financial spokesman Harry MacDougall said.

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