How is Batman Arkham VR connected to the Arkham Verse?

This October, alongside the launch of the Playstation VR, Batman Arkham VR will be released. We have had very little info on the game and how it takes place in the Arkham Verse, since Sefton Hill briefly mentioned it took place in the Arkham Verse, but judging by details from the E3 demo, it's not clear if it takes place after Arkham Knight. But it's hard to tell when it takes place due to two important details, Nightwing is dead, and Wayne Manor is still standing. Both of these details are confirmed, but it all doesn't add up. Nightwing was still alive at the end of Arkham Knight, but Wayne Manor was blown up, if this is some sort of prequel, it would make sense for Wayne Manor to still be standing, but it does not make sense for Nightwing to be dead, I hope WB or someone at Rocksteady clears this narrative mess before the launch.