VIENNA (Reuters) - Minority shareholders in Conwert (>> conwert Immobilien Invest SE) said on Monday a 1 billion euro (742 million pounds) bid from Deutsche Wohnen (>> Deutsche Wohnen AG) was too low, helping to push shares in the Austrian property firm above the offer price.

Conwert shares rose 9.4 percent to 12 euros, above Deutsche Wohnen's offer of 11.50 euros a share, which it said gave a 21.5 percent premium over the six month average price and 4.8 percent over Friday's close.

The approach is the latest in a string of deals in Germany's fragmented real estate sector, including Deutsche Annington's (>> Deutsche Annington Immobilien SE) 3.9 billion euro takeover of Gagfah (>> Gagfah S.A.) in December and Deutsche Wohnen's 1.7 billion bid for GSW in 2013.

Germany property has become a hot market given rock-bottom interest rates and attractive yields and Conwert's property portfolio is mostly in Germany. Another deal emerged on Monday when Adler Real Estate (>> Adler Real Estate AG) bid for Westgrund AG (>> Westgrund AG).

Conwert shareholders Petrus Advisers, activist investor Cube Invest and Austrian fund 3-Banken-Generali all questioned the Deutsche Wohnen offer.

"There must be a mistake with the price. I don't understand the offer," said Klaus Umek of Petrus Advisers, which he said owns more than 6.75 percent and less than 10 percent of Conwert.

Umek said he was glad Deutsche Wohnen had emerged as a bidder, saying Conwert was "a pearl. It is just poorly managed".

Petrus has been pushing Conwert to adopt a new strategy, insisting it reduce the number of unoccupied properties in its portfolio and restructure its debt.

Cube, which has been at odds with Conwert's management, also welcomed the arrival of a professional real estate investor but said the offer did not reflect the target's fair value.

Led by maverick investor Alexander Proschofsky, Cube said it would pursue its lawsuit filed last year challenging resolutions passed at Conwert's annual meeting in May, when Cube had a stake of about 1.5 percent.

Austrian fund 3-Banken-Generali, which said it holds nearly 2 percent of Conwert, stressed that it could not imagine taking up Deutsche Wohnen's offer.

"From today's perspective, the price is too low. It does not reflect what the company is worth," Managing Director Alois Woegerbauer told Reuters.

Deutsche Wohnen Chief Executive Michael Zahn said an 11.50 euro offer was an attractive exit point for many shareholders dissatisfied with the way Conwert was being run.

"The offer is on the table. It would be stupid if eight hours later I would think about a new price," he told a news conference in Vienna.

Two of Conwert's largest shareholders, Haselsteiner Familien-Privatstiftung as well as Karl Ehlerding and family, have committed to tender a combined stake of about 25 percent of directly and indirectly held Conwert shares.

The offer, which has a minimum acceptance threshold of 50 percent plus one share, will be published in mid-March.

(Writing by Michael Shields; editing by David Holmes and David Clarke)

By Angelika Gruber and Alexandra Schwarz-Goerlich