Gradle builds fail with JDK9 if MaxPermSize is used

Gradle (v2.13) is failing to launch with JDK9(1.9.0ea91) if MaxPermSize option is passed as a jvm arg. It works if -Dorg.gradle.jvmargs=-XX:+IgnoreUnrecognizedVMOptions option is passed to override the MaxPermSize setting

java.io.IOException: Stream closed at java.lang.ProcessBuilder$NullOutputStream.write(ProcessBuilder.java:436) at java.io.OutputStream.write(OutputStream.java:116) at java.io.BufferedOutputStream.flushBuffer(BufferedOutputStream.java:81) at java.io.BufferedOutputStream.flush(BufferedOutputStream.java:142) at org.gradle.process.internal.streams.ExecOutputHandleRunner.run(ExecOutputHandleRunner.java:56) at org.gradle.internal.concurrent.ExecutorPolicy$CatchAndRecordFailures.onExecute(ExecutorPolicy.java:54) at org.gradle.internal.concurrent.StoppableExecutorImpl$1.run(StoppableExecutorImpl.java:40) at java.util.concurrent.ThreadPoolExecutor.runWorker(ThreadPoolExecutor.java:1158) at java.util.concurrent.ThreadPoolExecutor$Worker.run(ThreadPoolExecutor.java:632) at java.lang.Thread.run(Thread.java:747)