GLP has set up China Logistics Fund II (CLF II) with a potential AUM of US$7bn. GLP China will take a 56% share and the remaining by 7 institutional investors. This will enable the group to bring in new capital sources while creating more development value as well as expanding its fund management platform (total AUM +36% to US$27.1bn). In our view, this move will raise fee income and impact earnings and RNAV from FY18 onwards when the fund ramps up its activities. Hence, we increase our FY17-18 EPS estimates by 1.4-4.4% to factor in the higher recurrent income stream. We retain our Add rating and RNAV-based target price of S$3.31.