Channel Manager: Add channel: sub-site - Unable to create a new subsite

1. Login to CMS with admin user
2. Click on Channel Manager perspective >> Click "Add Channel"
3. In blueprint select "Event subsite"
4. In Add channel event subsite dialog define name, url etc and click OK

Expected - Above new event subsite should be created and listed in channel manager
Actual - Above new event subsite is not created and below error is thrown in the console
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[INFO] [talledLocalContainer] 27.10.2011 10:55:18 ERROR [org.onehippo.cms7.channelmanager.channels.ChannelStore.createRecord():239] Could not save channel 'Go Green events subsite'
[INFO] [talledLocalContainer] org.hippoecm.hst.configuration.channel.MountNotFoundException: /hst:hst/hst:hosts/dev-localhost/localhost/hst:root/site
[INFO] [talledLocalContainer] at org.hippoecm.hst.configuration.channel.ChannelManagerImpl.createMountNode(ChannelManagerImpl.java:556)
[INFO] [talledLocalContainer] at org.hippoecm.hst.configuration.channel.ChannelManagerImpl.createChannel(ChannelManagerImpl.java:463)
[INFO] [talledLocalContainer] at org.hippoecm.hst.configuration.channel.ChannelManagerImpl.persist(ChannelManagerImpl.java:327)
[INFO] [talledLocalContainer] at org.onehippo.cms7.channelmanager.channels.ChannelStore$1.run(ChannelStore.java:233)
[INFO] [talledLocalContainer] at org.onehippo.cms7.channelmanager.channels.ChannelStore$1.run(ChannelStore.java:231)
[INFO] [talledLocalContainer] at java.security.AccessController.doPrivileged(Native Method)
[INFO] [talledLocalContainer] at javax.security.auth.Subject.doAsPrivileged(Subject.java:517)
[INFO] [talledLocalContainer] at org.hippoecm.hst.security.HstSubject.doAsPrivileged(HstSubject.java:117)
[INFO] [talledLocalContainer] at org.onehippo.cms7.channelmanager.channels.ChannelStore.createRecord(ChannelStore.java:231)
[INFO] [talledLocalContainer] at org.wicketstuff.js.ext.data.ExtJsonStore$1.onRequest(ExtJsonStore.java:56)
[INFO] [talledLocalContainer] at org.apache.wicket.request.target.component.listener.BehaviorRequestTarget.processEvents(BehaviorRequestTarget.java:157)
[INFO] [talledLocalContainer] at org.apache.wicket.request.AbstractRequestCycleProcessor.processEvents(AbstractRequestCycleProcessor.java:92)
[INFO] [talledLocalContainer] at org.hippoecm.frontend.PluginRequestCycleProcessor.processEvents(PluginRequestCycleProcessor.java:95)
[INFO] [talledLocalContainer] at org.apache.wicket.RequestCycle.processEventsAndRespond(RequestCycle.java:1252)
[INFO] [talledLocalContainer] at org.apache.wicket.RequestCycle.step(RequestCycle.java:1331)
[INFO] [talledLocalContainer] at org.apache.wicket.RequestCycle.steps(RequestCycle.java:1438)
[INFO] [talledLocalContainer] at org.apache.wicket.RequestCycle.request(RequestCycle.java:546)
[INFO] [talledLocalContainer] at org.apache.wicket.protocol.http.WicketFilter.doGet(WicketFilter.java:486)
[INFO] [talledLocalContainer] at org.apache.wicket.protocol.http.WicketFilter.doFilter(WicketFilter.java:319)
[INFO] [talledLocalContainer] at org.apache.catalina.core.ApplicationFilterChain.internalDoFilter(ApplicationFilterChain.java:235)
[INFO] [talledLocalContainer] at org.apache.catalina.core.ApplicationFilterChain.doFilter(ApplicationFilterChain.java:206)
[INFO] [talledLocalContainer] at org.hippoecm.frontend.ResourceRewriteFilter.doFilter(ResourceRewriteFilter.java:129)
[INFO] [talledLocalContainer] at org.apache.catalina.core.ApplicationFilterChain.internalDoFilter(ApplicationFilterChain.java:235)
[INFO] [talledLocalContainer] at org.apache.catalina.core.ApplicationFilterChain.doFilter(ApplicationFilterChain.java:206)
[INFO] [talledLocalContainer] at org.hippoecm.frontend.plugins.login.ConcurrentLoginFilter.doFilter(ConcurrentLoginFilter.java:54)
[INFO] [talledLocalContainer] at org.apache.catalina.core.ApplicationFilterChain.internalDoFilter(ApplicationFilterChain.java:235)
[INFO] [talledLocalContainer] at org.apache.catalina.core.ApplicationFilterChain.doFilter(ApplicationFilterChain.java:206)
[INFO] [talledLocalContainer] at org.apache.catalina.core.StandardWrapperValve.invoke(StandardWrapperValve.java:233)
[INFO] [talledLocalContainer] at org.apache.catalina.core.StandardContextValve.invoke(StandardContextValve.java:191)
[INFO] [talledLocalContainer] at org.apache.catalina.core.StandardHostValve.invoke(StandardHostValve.java:127)
[INFO] [talledLocalContainer] at org.apache.catalina.valves.ErrorReportValve.invoke(ErrorReportValve.java:102)
[INFO] [talledLocalContainer] at org.apache.catalina.valves.AccessLogValve.invoke(AccessLogValve.java:554)
[INFO] [talledLocalContainer] at org.apache.catalina.core.StandardEngineValve.invoke(StandardEngineValve.java:109)
[INFO] [talledLocalContainer] at org.apache.catalina.connector.CoyoteAdapter.service(CoyoteAdapter.java:298)
[INFO] [talledLocalContainer] at org.apache.coyote.http11.Http11Processor.process(Http11Processor.java:859)
[INFO] [talledLocalContainer] at org.apache.coyote.http11.Http11Protocol$Http11ConnectionHandler.process(Http11Protocol.java:588)
[INFO] [talledLocalContainer] at org.apache.tomcat.util.net.JIoEndpoint$Worker.run(JIoEndpoint.java:489)
[INFO] [talledLocalContainer] at java.lang.Thread.run(Thread.java:680)